– limited funds could hinder second crop

THE Guyana Sugar Corporation (GuySuCo) has ended its “first crop,” approximately 20 per cent short of the projected output, producing some 37,013 tonnes of sugar.

The Guyana Agricultural and General Workers Union (GAWU) has said that the sugar corporation had set a target of 46,475 tonnes of sugar for the first crop, but fell 9,462 tonnes short of that target.

Sugar was produced at the three operable estates, Albion, Blairmont and Uitvlugt, and, according to the breakdown of production, Albion produced 16,802 tonnes out of the projected 23,089 tonnes; Blairmont produced 11,867 tonnes out of the projected 13,976 tonnes; and Uitvlugt produced 8,344 tonnes out of the projected 9,410 tonnes.

“Alarmingly, the industry continues to underperform. It was disheartening to learn that no estate achieved even 90 per cent of its target. For our union and more so, the thousands of sugar workers, this is most distressing,” said GAWU in a press statement on Saturday.
Additional information obtained by GAWU indicate that, at mid-May, 2020, cane yields were far below the corporation’s planned objective as stated in its strategic plan. The information revealed that Albion produced 57.86 tonnes cane per hectare (TcH) as against a target of 77.59 TcH; Blairmont produced 69.90 TcH versus a target of 82.59 TcH; and Uitvlugt produced 57.64 TcH compared to a target of 75.76.

In addition, GAWU said that overall factory performance was far from acceptable standards. Again, around mid-May, the three factories in operation operated at an average of 95 hours per week against a target of 140.

Frequent factory breakdowns has been plaguing the GuySuCo for several crops now. The GAWU had pointed out previously that factory failures continue unabated while the corporation boasts an expanded staff structure at its Factory Operations Department.
“Certainly, it brings into serious question the functioning and output of this department which, we have learnt, is loaded with many retirees,” GAWU lamented.

With the out-of-crop season now in progress, maintenance activities have commenced at factories. On this score, the GAWU’s anxiety was heightened after it learnt from a GuySuCo document, that, “the lack of adequate funding to procure needed spares for [the] upcoming dull season [out of crop] will pose a challenge to the maintenance programme.”
“This is an ominous sign for grinding in the upcoming second crop 2020 which is typically longer in duration,” said GAWU.

At the Uitvlugt factory, for example, out-of-crop maintenance is in progress for many weeks now and workers have shared that they are instructed to re-use worn parts in areas that required complete replacements. This level of reckless engineering practice directed by the technical team will no doubt eventuate into frequent factory breakdowns during the upcoming grinding operations, said the union.

“The GAWU remains are very much disturbed by the laxity on overall management of the sugar industry. The corporations’ performance record over recent years justifies our position,” said GAWU.

The cash-strapped GuySuCo was expected to receive much- needed funds last week. It was reported that the novel coronavirus (COVID-19) pandemic and other prevailing national conditions have rendered the national treasury incapable of providing a bailout to the “cash-strapped” GuySuCo, but all hope is not lost, as the company is expected to benefit from $1.5 billion, paid to The National Industrial Commercial and Investment Limited (NICIL) for the sale of land.

The Finance Ministry, in response to GuySuCo’s request for a bailout, cited a $30 Billion bond backed by NICIL’s assets and guaranteed by the Government of Guyana, which was secured through NICIL to retrofit and revitalise the three remaining sugar estates.

During the period July 2018 to February 2020, $9,720,759,568 was disbursed to GuySuCo to fund its capital and operational expenditure – much of which was outside the terms of the bond.

Additionally, NICIL, through the Special Purpose Unit (SPU), sold lands that were vested to it, and as such garnered deposits of $2.1 billion.

According to the Finance Ministry, the full sum was used to offset bond payments that became due in May, 2020, and the balance of $1.5 billion for the lands will be paid over to NICIL when the vesting orders are signed and gazetted. The corporation will benefit from part of this sum.

In referring to the current condition of the sugar corporation, President David Granger had said, “it is very unfortunate we are in this position. Throughout the tenure, we have been engaged in trying to resolve the issue of the industry.”

“We have done everything possible to return the industry to normalcy and even profitability…we will continue to help and not send anybody home…we want an efficient sugar industry which can produce sugar at competitive prices,” said President Granger.
The idea is to compete with Brazil, Cuba and other “heavy” sugar producers, but in order for Guyana to do that, the industry needs to be economically viable and feasible.