-emphasises long-term economic benefits, strategic investments and new industry culture in rebuilding infrastructure, increasing efficiency

RECOGNISING both the challenges and efforts to rebuild the country’s sugar industry, President, Dr Irfaan Ali has underscored the government’s commitment to long-term success despite facing significant hurdles.

The Head of State during his inaugural ‘In the Seat’ media engagement last week, stated that the continued investments in the Guyana Sugar Corporation (GuySuCo) is aimed at making the industry economically viable, but Guyanese must be reminded of the deplorable state of the sugar industry prior to the People’s Progressive Party/ Civic (PPP/C) administration.

“One must remember what we inherited when we came into office,” he said.
“The fields were left abandoned, even the canals—big trees were in all the canals, all the punts were rotted. There was no dam. It was like a forest. So, we had to build back from the field, then we had to build back from all the factories,” he explained.

He highlighted that rebuilding the sugar industry is a step-by-step process, requiring not only physical infrastructure but a transformation in the industry’s culture and workforce.

“So now is the process of rebuilding,” he said.

He urged that the sugar industry should not just be viewed as a financial product, but also from an economic perspective, citing the industry’s spin-off benefits to communities.

“We cannot look at sugar only for our financial product. That’s not going to be the measurement, because there is a tremendous other impact for sugar that is not book financial, but more economical. So, there’s something called financial viability and economic viability.”

He added: “In the spin-off effect, there is a measurement, an economic measurement that must be taken into consideration. So, you invest in sugar not only for the sugar workers, it is for the economy that sugar supports.”

However, President Ali acknowledged that a major challenge lies in the aging equipment and lack of spare parts for the sugar factories, which have caused significant downtime.

To address these challenges, the government has enlisted international support.
“We have to bring in technical capability to support what is there. And we have a team from India, for example, working now; we have a team from Cuba that is working on the field and in the factory, doing studies, working to help us to build back the system, improve the system, bring efficiency into the system at the field and the factories. So, they’re working on that.”

In addition to restoring the physical infrastructure, the President pointed out the need to create a new culture in the sugar industry—a culture focused on efficiency, productivity, and a sense of ownership among workers. “We have to develop a new culture, a winning culture, within the industry,” Ali said. “This period of rebuilding will have its challenges, but we have to embrace it if we are going to make the industry successful.”

PRODUCTION COSTS AND STRATEGIC INVESTMENTS

Turning to the issue of costs, President Ali acknowledged the high cost of production in the short term due to the necessary capital investments in machinery and infrastructure. However, he emphasised that improving efficiency and increasing yields would eventually lower costs. “We cannot consider the cost of production as the primary objective right now,” the President said.

“That is the first thing, the cost of production has to do with current capital expenditure, right? We have to fix that. So, we have to invest in improving efficiency, creating high yield[s] and also reducing the cost of production.”

Ali also highlighted the broader economic importance of sugar production, beyond its direct financial returns.

He noted the multiplier effect the industry has on local economies, particularly in rural areas. “When you look at what sugar meant, think Wales for example. When the factory was closed down in Wales …a market that had hundreds of vendors closed immediately, and the shops closed,” he said.

President Ali also addressed the broader issue of agricultural sustainability, pointing out that in many developed countries, agriculture cannot survive without significant subsidies.
He argued that Guyana must work towards making its agricultural sector more competitive through strategic investments. “As the country grows, we have to realise that we have to make these things viable, we have to invest in improving our competitiveness. Naturally, that cost will come down and the cost of energy will come down also because as the cost of energy comes down by 50 per cent, production costs will also come down.”

Despite the challenges, President Ali remained optimistic, noting that there are “bright spots ahead” that will help reduce the cost of production and boost the industry’s long-term viability.