Indian Govt. can provide expertise to resuscitate sugar

Jun 22, 2015 News

– High Commissioner
In view of the many ailments affecting the local sugar industry, including the fact that Guyana is producing sugar at approximately $US800M per tonne and selling it at a loss, $US300 per tonne, Indian High Commissioner Shri Venkatachalam Mahalingam has indicated that the Indian Government stands willing to assist in resuscitating the ailing Industry.
According to the diplomat, in view of the stability and success of the Indian sugar market, in particular during the production phase, that success could be transferred over to the local sugar industry through technical assistance from Indian sugar experts.
“India and Indian consultants in the sugar industry are very much capable of providing the necessary assistance to Guysuco and the sugar factories in Guyana. That I can say, because we have expertise on crop production, sugar technology, and upgrading sugar factories,” Shri Mahalingam said.

Indian High Commissioner Shri Venkatachalam Mahalingam

While the High Commissioner intimated that so far he has not had an opportunity to discuss collaborative efforts with A Partnership for National Unity/Alliance For Change (APNU+AFC) government focusing on the Sugar industry, he revealed that the previous administration (Peoples Progressive Party/ Civic) and the Indian Government were previously at the nesting stage of discussions with Indian consultants on the Sugar industry.
He stated that former President Donald Ramotar, along with a team went to India in order to attend a meeting in Mumbai with sugar industry experts, during which the former President was briefed about potential areas of local sugar that assistance could be provided towards.
The High Commissioner also indicated that the former President had visited the Gujarat Sugar Factory and was appreciative of the way in which the factory was run, and of Indian sugar as a whole.
“That is just one sugar factory. There are thousands of factories in India, spread over North, East, West and South. And I can confidently say that our sugar industry is very efficient.”
He also stated that there are some norms that are prescribed, which most sugar factories in India follow. “Sugar is done based on requirement in the sugar factory. It is not the cut and load method, that is not done in India. There is a structured way in cutting and crushing. Between the cutting and crushing, the time is limited, according to the prescribed time.”
The APNU+AFC administration recently approved the release of $3.8B to facilitate the payment of wages and salaries of sugar workers, as well as current payments to the National Insurance Scheme (NIS), payments owed to Guyana Revenue Authority (GRA) and to purchase fertilizers, fuel and lubricant and spares for equipment. This came after a request by Agriculture Minister Noel Holder for a total of $16B in an effort to resuscitate the industry
According to the Minister of State Joseph Harmon, the $3.8B approved also takes into consideration payments overdue to suppliers. The Minister had said that this is necessary to reduce the backlog of debt created by the Corporation, which currently stands at US$90B
In regards to the remainder of the Minister’s request, Harmon had stated that Holder would have to return to cabinet, request and justify the release of the remaining $13B, whenever the funds are needed. The Government has also announced a commission of inquiry into the sugar industry in order to determine the future course that the administration should take regarding sugar. He nevertheless made it clear that whatever decisions are taken about the Industry would not be made lightly, especially since 16,000 persons directly depend on the sugar industry for their livelihood.
At the Management level, Guysuco has been through major shakeups in recent weeks, in particular with the sacking of its former CEO Dr. Raj Singh, as well as his entire Board of Directors and the initiation of an Interim Management Committee (IMC) with two former CEO’s- Paul Bhim and Errol Hanoman to steer Guysuco out of its troubles.
India, the second largest sugar producer in the world, has been disaffected by the seven year price low for sugar on the world market, but nevertheless has maintained strong production levels. According to the Indian Sugar Mills Association (ISMA), India’s sugar production recorded an 11.5 percent increase as of March 31st, for the 2014-2015 crushing season.