THE Government of Guyana has allocated some $6B to the Guyana Sugar Corporation (GuySuCo) in the 2022 budget for the continued development of the industry.

This was announced by Senior Minister within the Office of the President with responsibility for Finance, Dr Ashni Singh, on Wednesday, during the presentation of the 2022 budget, at the Arthur Chung Convention Centre.

The Finance Minister, during his speech, stated that the government’s commitment to the sugar industry remains unwavering despite the deplorable state of the estates following their closure.

In 2017, the Wales, Skeldon, Rose Hall, and Enmore sugar estates were closed and saw over 7,000 sugar workers being severed.

“Since resuming office, our government has been proactive in focusing on: reopening and recapitalising the closed estates; rationalising cost structures; diversifying the sugar sales mix to maximise earnings; re-engaging previously displaced workers; and repositioning the industry on a sustainable path to profitability,” Dr Singh said.

The government, since taking office in August in 2020, has been focused on the rehabilitation of assets and retooling of the estates.

One of the first decisions the government took, after being elected to office, was to reopen the shuttered estates and factories, breathing life into communities that had become depressed after their closure.

The minister revealed that over 1,300 persons have since been reemployed and over 5,000 workers who were severed in 2016 and 2017 have each received cash grants of $250,000 in 2021.

Operations have since commenced at the Enmore, Skeldon and Rosehall estates. The Wales Sugar Estate, however, has remained closed due to the factory being defunct because of poor management.

Nevertheless, Dr Ashni assured that, in 2022, strategic investments will be made at Albion, Blairmont, and Uitvlugt, to upgrade and mechanise where appropriate to see improved field operations and expansion of packaging capabilities to produce more value-added products for domestic and international markets.

According to the minister, these investments are being undertaken in anticipation of improved production levels at GuySuCo.

He further explained that the sugar corporation will be concentrating its marketing efforts on shifting from the low-value bulk-sugar markets to more bagged and packaged sugar products. To this end, these products will increase from 34 per cent in 2020 to 64 per cent of total production in 2022.

Aside from the $6 billion that has been allocated to the industry to support its ongoing investment in field and factory operations, Minister Singh said the government will continue to engage private investors’ interest in the sugar estates.