Is the State Paper on GuySuCo a misguided document?

Jun 08, 2017 Letters

Dear Editor,
The recently tabled State Paper on the future of the sugar industry in the National Assembly clearly demonstrates the Govt’s ill-founded destiny for the industry. Sugar output, according to the paper, will be reduced to 147,000 t/annum produced by amalgamated cultivations and 3 factories (Albion, Blairmont & Uitvlugt) with focus on direct consumption, value-added sugars and electricity production.
Editor, in this contribution, I will examine whether Govt’s proposals as outlined in the State Paper to efficiently produce quantities of direct consumption, value added sugars and electricity using 3 factories is possible taking into account the present configuration of the 3 estates given the Government’s abhorrence in maintaining this important state industry.
In terms of direct consumption, value added sugars, of the 3 estates identified only Blairmont, at this time, is capable of producing such quality of sugar. That estate as currently configured can produce about 37,000t of this type of sugar. Uitvlugt’s factory is only capable of producing bagged sugar which is only suitable for the local market; whereas Albion can only produce raw bulk sugar at this time. In terms of electricity production, none of the factories are currently capable to export power to the national grid.
With these present-day realities and no commitment to invest and upgrade the factories, the ‘Minataurised GuySuCo’ with Albion, Blairmont & Uitvlugt have limited capabilities and can practically deliver only 37,000t direct consumption, value added sugars and zero kilowatts of electricity to the national grid at best. It therefore means some enhancement would be required but for whatever reason was not alluded to in the paper.
The Honourable Minister of Agriculture asserts in his paper that 25,000t of value added, direct consumption sugar will go towards the local market and 50-60,000t to the CARICOM & Regional markets. This follows that 75-85,000t or 51-58% of the newly proposed production must be direct consumption value added grade sugars. With a market of 75-85,000t and production capacity of 37,000t, there is an obvious deficit. Where will the remainder 38-48,000t come from? GuySuCo’s myopic IMC and its platoon of executive continue to misguide the Govt at the expense of taxpayers.
Clearly, the Administration is out at sea when it comes to sugar. Estates which are capable of production direct consumption, value added sugars and supplying electricity to the national grid are being closed and sold off – Enmore and Skeldon respectively. Rather than harnessing capacity for a secured future the political hierarchy is shooting in the dark and putting at grave risk the lives of thousands of ordinary people.
Sookram Persaud

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