Persaud tells stakeholders…
AGRICULTURE  Minister Robert Persaud, speaking to sugar sector stakeholders during a meeting at Albion Community Centre, said 2011 should serve as a “wake up” year for the sector. “We have started 2011 and this year can be a significant landmark year for the sugar industry…this year should serve as a wake up year for all of us, be it management and workers,” he said.
Persaud said looking at the industry with a new perspective all stakeholders should work to making the year a success for the industry.
In 2010,  Guyana Sugar Corporation (GuySuCo) ended at the lowest level it has in the last decade. The most recent figure was a production total of just over 220,000 tonnes of sugar.
Production in 2009 was 234,000 tonnes and 226,000 tonnes in 2008. The company has been struggling to meet the 300,000 tonnes target and eventually hopes to make it to a 400,000 tonne production level.
The Agriculture Minister said the current administration is committed to the sugar industry, which is facing many challenges.
According to him, primary of these is the 36 per cent price cut by the European Union (EU), in keeping with rulings by the World Trade Organisation, which is costing GuySuCo some $9B each year.
Apart form this, the company: has racked up a debt of some $7B to suppliers; has seen an increase in costs, for example from 1993 to now labour cost for one tonne has increased from $24,000 to $71, 364; problems getting the canes out of the field; and has had to deal with wastage, strike actions and a low turnout, recorded around 48 per cent.
“Notwithstanding the challenges, notwithstanding the differences, we must use 2011 to dedicate and commit ourselves,” Persaud said.
Opportunity
The Agriculture Minister stressed that the difficulties and challenges of the past year has presented the sector with an opportunity to mold a new, viable and robust sugar industry.
Acknowledging that such a process will take more than just talking about it, Persaud disclosed that the Guyana Agricultural and General Workers Union (GAWU), as well as the National Association of Agricultural, Commercial and Industrial Employees (NAACIE), have indicated their commitment to moving forward.
“Both unions have said they are willing and able to engage GuySuCo management, the Government and other stakeholders in refining and defining and ensuring that the new, relevant and robust industry is built,” he said.
Such an industry, Persaud added will address the needs and welfare of the sugar workers and also be positioned to make a meaningful contribution to national development.
Currently, no levies are collected from the sugar corporation.
In July 2003, the government successfully piloted legislation in the National Assembly to phase out the Sugar Levy Act, taking less and less each year until no levies were paid.
However, GuySuCo makes its contribution to national development through the taxes that are paid based on their profits, the employment opportunities generated and the social service programme advanced.
The Agriculture Minister stressed that at the end of the day the development of the Guyanese people is paramount on the current administration’s agenda, through the development of sectors that support national development.
The sugar industry, one of the largest industries in the country started in the 1630s, is a pillar in the country’s economy and has seen significant investments by the Government of Guyana.
Around 2003 GuySuCo was in arrears to the tune of $2.9B which the Government waived, enabling the industry much needed resources to embark on its plan to modernize its operations in light of the impending challenges.
The administration was also instrumental in arranging concessional financing terms for the establishment of the Skeldon Modernization Project in the largest sugar producing region in the country at a cost of nearly US$200M.
It also invested US$12M in the realization of project Gold at Enmore in Region Four to spearhead the industry’s focus towards the more lucrative value added production of its sugar.
The capital expenditure for 2010, which was critical to the industry producing enough canes to push production closer to the 400,000 tonnes mark in the coming years, was only made possible after government provided $4B through a land sale agreement.
The administration has also assisted in a number of other areas, such as financing critical drainage and irrigation projects and, most recently, providing material support to aid the industry when its cultivation was under threat during the ‘El Nino’ phenomenon from mid 2009 into this year.