GuySuCo explains delay, assures March 16 API payment
THE Guyana Sugar Corporation (GuySuCo) has expressed concern over the strike action, taken by some workers, over the delayed payment of the Annual Production Incentive (API). In a release yesterday, it gave the assurance that the API will be paid on March 16.
According to GuySuCo, the delay is due to the late start of the first 2012 crop.
The corporation also cited the inability to obtain working capital from a foreign bank, which has not only affected paying of the API but also resulted in its lagging way behind in its payments to creditors.
GuySuCo said its short term debt stands at $8,000M and comprises amounts owing to local banks ($4,100M), creditors ($3,2000M) and advances from customers ($700M).
The corporation acknowledged that the amount owing is significant but added it is finding it very difficult to source additional short term financing to meet its working capital requirements.
It said an improvement in its financial position is dependent on producing sugar and then receiving cash from the sale of it.
GuySuCo said this has not been possible, so far, due to production, to date, falling below the estimate for the crop.

EXERCISE PATIENCE
However, the corporation appealed to all its workers to exercise patience during this difficult financial period it is experiencing and pledged to  put in place measures to ensure that the API is paid on March 16.
Meanwhile, Agriculture Minister Dr. Leslie Ramsammy told the media on Monday that major disruptions caused by the strike could affect the GuySuCo target of some 265,000 tonnes.
He said, while workers have returned to the various estates to resume work, there are a few minor issues which he anticipates will be ironed out in due time.
“The disruptions with several estates over the weekend were short disruptions and I’m glad that the workers in most of those estates are back at work,” Ramsammy said.
He said the setback was supposed to be explained to workers. However, he is of the view that there might have been a communication barrier between them and the various representatives at the affected estates.
The Minister said the goal is on creating the right environment to make sure that there is little or no disruption in the sector.
He said that GuySuCo’s target of 265,000 tonnes is reachable even though there were a few setbacks. It is still early in the grinding season and operations have begun at other factories.
The Chief Executive Officer, Mr. Paul Bhim, earlier this month, said that grinding had commenced at three sugar factories – Uitvlugt, Blairmont and Albion but Wales, Skeldon and Enmore are to begin by this weekend.