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Harsh decisions now needed at GuySuCo

Aug 04, 2022 Letters

Dear Editor,

 Letter writer, Liebert Alleyne, in a letter to the press provided a statistical comparison of cane productivity of 11 CEOs of GuySuCo, including Mr. Sasenarine Singh and not surprisingly, the incumbent CEO ranked the poorest performer at 46.6 tonnes cane per hectare. The last CEO, Harold Davis Jnr, produced canes at 62.6 tonnes per hectare and this was supposedly under severe constraints.

It is therefore no wonder that the low cane yields will translate in low sugar production which has seen a progressive decline since 2020 with the first crop this year being the lowest sugar production ever. With a small target at 20,260 tonnes, the industry could have only managed to scrape in just over 13,000 tonnes. GAWU had contended that there are many agronomic issues questioned major decisions affecting production and productivity which were taken without the consent of the Board. It must be mentioned here that currently the Board constitutes a team of selected hand-picked individuals after the immediate resignation of the Chairman and then the subsequent resignation of the Vice- Chairman. Both men resigned after altercations and disagreement with the CEO based on alleged malpractices perpetuated by no other than the CEO himself.

The current CEO feels that targeting the sales mix by selling more packaged sugar will rake in more revenue since the price is more lucrative at over $700 US per tonne. However, there are some variables which he is overlooking. What will you sell if you do not produce enough? Will you continue to increase the price on the local market, thereby pressuring our local consumers? What about the production cost, will that be lowered? There are factors which suggest that the production cost will keep climbing such as the increased cost of tillage by using the articulated tractors, the increased cost of unnecessarily doubling the low grade rock phosphate application, etc. Unit cost of production must come down and production must go up but the current state of affairs suggests that neither will happen. Empty rhetoric cannot achieve this.

The second crop is now in progress and from all indications, the fortunes of GuySuCo continue its downward trend with no solution on the horizon. As at 28th July the out of cane hours for the 3 operating estates range from 81 to 93 hours per week with a weekly TC/TS ranging between 15 and 22. Records show that there is already a negative variance of 2,706 tonnes. This is indicative that GuySuCo may not be able to achieve its second crop target as well.

This Government has given GuySuCo all the resources it needed. There is no room for excuses but there is no dearth of excuses from the leadership of the ailing Corporation. From 2020 to June 2022, $14.5 billion dollars have been given to GuySuCo and from this more than $10 billion went to the operating estates and to date there is no visible benefit accruing, instead cane productivity fell sharply and there is now gross discontentment among sugar workers who are not witnessing the anticipated improvement promised by the CEO. Where did the $10 billion go?

GAWU and its members have now been calling for the removal of the CEO. As promised by the President it must not be business as usual at GuySuCo and heads must roll. Some harsh decisions must be made to ensure that sugar survives since the Government has only recently pumped another $3.4 billion into GuySuCo. These monies must be spent in an efficient, economic and effective manner to bring about maximum benefits and this need competent leadership.

 

Yours sincerely,

Narendra Lall

 

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