Guyana to collect $6.4B in EU’s sugar support this year

Jun 20, 2013 News

Guyana is to sign 23M Euros ($6.4B) financing agreement today as part of Europe’s continuing assistance programme for sugar.
The monies will be for the 2012/2013 programme and will see Guyana drawing down on 115M Euros since the programme started back in 2006.
The measures were developed by the European Union to help Guyana and other sugar-producing nations deal with the fallout from the

Guyana is to sign an agreement with the EU today for the release of $6.4B, representing assistance to price cuts.

removal of a protected market to the members of that trade body, which includes Britain. As a result, Guyana and other sugar producing countries were saddled with a 37 per cent price cut.
Earlier this year, EU said that since 2006, when the programme started, it made available 91.5M Euros to Guyana, equivalent to more than $24.7B at today’s exchange rate.
“A further amount, up to 23.4M euro is scheduled to be disbursed in 2013 on signing of the Financing Agreement for the 2012 /2013 programme, which is expected in the near future.”
The disbursements have assisted the delivery of the Guyana National Action Plan (GNAP), which focuses on adaptation of the sugar industry by measures which include the upgrading of sugar factories, adding value through sugar packaging and co-generation of power, increasing sugar production and mechanizing field operations, thereby enhancing the competitiveness and productivity of the sector.
The disbursements are determined on the basis of the Government of Guyana achievement of general macro-economic conditions as well as indicators that monitor the sugar industry’s performance. Funds are also channeled towards studies, evaluations and audits to ensure effective implementation, EU had said.
Guyana’s sugar industry has fallen from being top earner as labour worries, falls in prices and outdated equipment combine to make it hard to compete.
Several Caribbean countries have pulled out of the sugar business, but Guyana has remained committed. It has invested more than US$200M in a new factory at Skeldon, mechanisations of field operations, and a new packaging plant at Enmore.
Recently, the EU’s agricultural arm voted to extend the deadline, to 2020 from 2015, for the opening of the market there, giving Guyana a little breathing space to get its house in order.
On Sunday, President Donald Ramotar called for help to rescue the industry even offering lands to sugar workers and their unions under a cooperative-style deal.
Last year, sugar recorded its worst performance under the PPP/C administration and the trend continued this year with the crop a dismal one, falling way short of projections.
Guyana is among 20 or so sugar producing African/ Caribbean/Pacific (ACP) countries benefitting from the sugar assistance programme being carried out under EU’s “Accompanying Measures for Sugar Protocol Countries affected by the Reform of the EU Sugar Regime”.