THE local sugar industry in recent years has been experiencing many challenges and problems such as industrial relations instability, adverse weather conditions, factory inefficiency and a shortage of supply of canes.
In addition, the industry has had to absorb the shock of the drastic price cuts as a result of the end to the sugar protocol by the European Union.
However, through a determined effort by the government, the industry has survived and is currently at the crossroads of returning to increased production and profitability and, in this regard, the Skeldon factory holds the key to this process.

And  because of the huge capacity of the Skeldon factory, a significantly larger volume of cane will be needed.

In fact, the supply of canes – even for the older factories –  is adequate on some occasions. So increasing the supply of canes is crucial for turning around the industry, but the Guyana Sugar Corporation (GuySuCo) does not seem capable, on its own to produce an adequate supply of canes and therefore has correctly embarked upon  collaboration with private cane farmers to ensure there is an adequate supply of sugar cane.

Many years ago, private cane farming was a big business with hundreds of farmers abandoning traditional crops and turning to cultivation of sugar cane which paid handsome dividends.

However, with the drop in prices and the contraction of the sugar industry in the 1980s and the early 1990s, cane farming became unprofitable and as such the business came to a virtual halt.

Now the opportunity is returning for private cane farming and farmers would be eagerly grabbing it so as to widen their bases of income, but many need help to get into operation and in this respect the $600M aid package announced by Agriculture Minister Robert Persaud is most commendable.
The minister expressed the view that the concessions  will bring relief to private cane farmers with the hope that they will increase their production and, as a result, the overall productivity of the sugar sector.

Persaud also announced an increase of $5,000 per tonne on the price of cane supplied by the farmers.

Further, he said that for the next crop, government would be providing half of the required fertiliser to  cane farmers as part of the menu of measures aimed at making life easier for them  and encouraging greater productivity from them. This intervention will come at a cost of $80 million.

The minister revealed that GuySuCo has agreed to reduce its punt and machine charges by 10 percent and 25 percent each. Further, he said the President has agreed to the purchase of  five D-6 bulldozers and for this purpose, government has committed the sum of $250 million.
These are all positive and encouraging steps which should motivate private cane farmers to increase their production, thereby helping the sugar industry to rebound.