Sugar is in crisis

Oct 16, 2009 Editorial

Sugar has long been one of the mainstays of the national economy. Indeed the sugar company is the largest employer and sugar cultivation accounts for most of the farm lands along coastal Guyana.
For years the world looked to Guyana for sugar and its crystals became almost legendary. A British company, Tate and Lyle, actually bought sugar from Guyana and refined it for resale around the world.
But it was the dark crystal that actually made the Demerara sugar world famous and to this day it remains in demand.
However, unless Guyana digs deep in its fight to keep sugar as a world rated produce the industry could die.
This would be a tragedy; thousands of workers would be forced on the breadline unless they seek alternative employment.
Try as it might, the government cannot seem to make the sugar workers realize that they could be the ones to kill the goose that lays the golden egg.
The sugar workers make good money; the country makes money and land is beneficially occupied. More recently, the sugar industry has become a source of electric power which is needed because of the fact that demand has outstripped generation.
But many of the sugar workers are unaware that they could be driving the nails in the coffin of the industry.
They have been demanding more and more money even though the earning capability of the industry has declined with the price cuts imposed by the European Union.
But even before the price cuts, the production capability was on the decline because the factories were losing their efficiency. They had been there a long time and they were depreciating.
At the same time the number of cane cutters kept declining because the older ones retired and the younger ones are not keen on manual labour these days.
This meant that there is less sugar for the market, less land going under cultivation and less earning capability of the sugar company.
The Catch-22 situation continues with the workers demanding more money from the declining earnings and things move from bad to worse.
This past week strikes have been rocking the sugar industry. The workers are demanding more money and the sugar company is insisting that it cannot pay more. The managers point to the growing debt and to the higher wage bill. The workers point to the increased work they are expected to perform and the absence of the necessary compensation.
When the European Union announced the price cuts on the preferential market, many countries decided to get out of sugar. Countries in the Caribbean diversified but Guyana persisted.
There was the recommendation that Guyana shut down some of its estates; the government resisted although it seems that with each passing day this is going to be a reality despite the bravado.
But that apart, the strikes by the sugar workers is not helping. Not only do they encourage a decline in production at this difficult time by leaving ripe canes in the field, they also encourage destabilizing efforts. Sabotage is not unheard of.
Two weeks ago the sugar company reported cases of chunks of chain, boulders and slabs of steel being placed between the cane destined for the mill. This would have put paid to the operations for a while. A silent mill means no production and no earning. The workers were doing themselves an injustice.
It is rather strange, though, that the head of the sugar union is a Member of Parliament and a member of the ruling party. Surely, he should rein the workers who threaten his government’s programme for economic growth.

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