THE Guyana Sugar Corporation (GuySuCo) has to drastically reduce the cost of production and significantly increase its revenue in order to continue contributing to the country’s foreign exchange earnings, which is greatly needed, says Minister of Agriculture Noel Holder.

This is one of the many points that will be discussed when Cabinet holds a retreat to discuss matters pertaining to the findings of the Commission of Inquiry (CoI) into the sugar industry.
Minister Holder in making this disclosure, said that during the Cabinet retreat CoI members will make presentations and recommendations on the way forward for the sweetener industry. “Firstly, a Commission of Inquiry (CoI) was appointed, and within 70 days a preliminary report was to be presented, which was done. We [will] look at it and say whether there is need to strengthen sectors and [whether] other recommendations are needed for enhancement of the industry,” the Agriculture Minister explained.

“This is serious business, we are looking at the future of an industry that gives this country a large quantum of foreign exchange, so we just don’t divest it, or give it to somebody to develop the land for housing, since that will not give us foreign exchange, so all this will be taken into consideration when cabinet meets.”

Foreign exchange issue

Minister Holder said further: “People also do not realise that 65 per cent of the cost of sugar is labour cost, so in a sense [from] every dollar from sugar earned, only 35 cents go back out, sugar might be losing money but the country needs the foreign exchange…. So the decision in regard to sugar is a very important one and can’t be taken lightly.”

When asked about the performance of the U.S.$200M Skeldon Sugar Factory which has taken a beating since its operationalisation in 2010, Minister Holder explained that since the government has had a hands-off approach in the agriculture sector, the industry has surpassed its targets recently. “This is where the politics started to come back in, having seen that, now you hear workers go on strike.” Then he questioned: “What is the purpose of strike? They think the government will jump in and hand you money like what happened in the past!”

The Agriculture Minister is of the view that the recent strike action organised by the Guyana Agricultural and General Workers Union (GAWU) was politically motivated, since the sugar industry is now performing under a newly installed Interim Management Committee (IMC).

“One of the problems with the sugar industry is that it has been used as a political football, and you have seen the result of that is the reduction in productivity over the years, and the putting of square pegs in round holes by the former government,” he said. “We have put in an interim management team; you have seen that productivity has gone up. In fact, we have surpassed targets recently.” Minister Holder believes that GAWU, having seen that, is now on the defensive and being a political organization, is trying to disrupt that process.