Production of rice and sugar slashed by half in first quarter - BoG

Production of rice and sugar slashed by half in first quarter – BoG

Jul 31, 2022 News

Kaieteur News – Despite claims that there is no sugar shortage, the Bank of Guyana (BoG) quarterly report has documented quite the opposite; a fall in production but not only for sugar but rice as well – two of the country’s largest export commodities.

According to the report, “there were decreases in the production of rice and sugar by 53.1 and 47.7 percent respectively.” The country’s central bank noted that the substantial decline in rice production was attributed to the adverse effects of flooding in the previous year, which meant farmers were prevented from sowing all available lands for the first crop of 2022.

When it comes to sugar, it was explained that the 47.7 percent drop in production was as a result of the halt on grinding at the Uitvlugt sugar estate, caused by mechanical issues. These challenges, the BoG revealed had a major impact on the country’s total production as the estate was responsible for 25 percent of the output.

Other sectors

The bank explained that the Guyanese economy recorded a mixed output performance from its major sectors during the first three months of 2022.

According to the report, “As oil and gas activities continued, the non-oil economy experienced moderate growth on account of economic activities regaining momentum from the full reopening of the economy coupled with fiscal measures to alleviate the rising costs of production and services.”

Forestry for instance grew significantly by 79.3 percent during the period, on account of increased output of total logs by 90.1 percent. Central Bank revealed too that the favourable increase is partly due to small-scale loggers returning to their operations along with removal of all COVID-19 restrictions.

Meanwhile, the mining and quarrying sector is said to have experienced growth in most industries, except for a marginal decline in oil.

“Total bauxite production increased by 6.4 percent, while gold declarations was higher by 3.0 percent. The latter resulted from a 30.5 percent increase in declarations by the large scale miner, Guyana Gold Fields,” the report outlined.

Output of sand and crushed stoned also recorded an increase due to enhanced construction activities across the country.

The Bank did not disclose the growth percentage for these resources, but indicated that crude oil production registered a marginal decrease of one percent, despite the start-up of production from the Liza Unity Floating, Production, Storage and Offloading (FPSO) vessel in February. In fact, it was noted that the Liza Destiny FPSO had paused production due to planned maintenance during March. Crude oil production totalled 10.9 million barrels at end-March 2022 compared to 11 million barrels for the corresponding period one year earlier.

In the manufacturing sector, there was a 75.1 percent increase in the production of tablets. Similarly, detergent production grew by 65.8 percent; aerated drinks by 13.7 percent and rum by a marginal one percent.

In contrast, there were declines in production of oxygen by 32.3 percent, total liquids by 17.1 percent, putty by 13.0 percent, paint by 7.5 percent and alcoholic beverages by 1.3 percent.

Bank of Guyana also highlighted in its report that performance in the services sector improved in the areas of wholesale and retail trade and repairs; financial and insurance activities; accommodation and food services as well as entertainment and recreation.

Construction activities increased in both the public and private sectors with the building of infrastructure by Central Government as well as home building by citizens.