GuySuCo on track for 2030 turnaround to profitability – Agri. Minister

Feb 12, 2026 News

---

…Opposition MPs raises concerns as $13.4B approved

(Kaieteur News) – The operations of the Guyana Sugar Corporation (GuySuCo) took centre stage on Tuesday as the Committee of Supply considered the Ministry of Agriculture’s allocation for 2026.

Opposition Members of Parliament (MPs) Vishnu Panday of We Invest in Nationhood (WIN) and A Partnership for National Unity (APNU) MPs Vinceroy Jordan, Dr. Terrence Campbell and Saiku Andrews, among others, grilled Minister of Agriculture Zulfikar Mustapha on whether the state-owned company will finally meet its production targets after years of billions of dollars being invested.  Throughout it all, Minister Mustapha expressed optimism, pointing to the Government of Guyana’s five-year strategic plan as the framework expected to return GuySuCo to profitability by 2030.

Panday a former director at GuySuCo, pointed out that the corporation has missed its production targets in recent years.  He outlined that previous years, sugar factories grind sugar for just over 300 hours per week.

He positioned that in order to meet the target set for this year, it would require the factories to grind sugar for about 445 hours per week. “What is it that we have done suddenly to make GuySuCo prepared to crush for 445 hours per week, if we don’t, we cannot produce 100,000 tonnes of sugar,” Panday said.

Minister Mustapha countered, insisting that he is hopeful that the mechanization of the corporation would move between 50 to 60 percent in the field to drive up production.  He also pointed to the recapitalisation of sugar factories, including the replacement of rollers, turbines and conveyor systems, as well as improvements in juice extraction.

“All these things will contribute to better sugar production and I am very optimistic,” he added.

Minister Mustapha referenced the first maintenance period, expressing confidence that improved extraction rates would be realised once factories restart. He also noted that this year it is expected to have a higher yield of cane output per hectare. “And that will help drive up production and I am very optimistic that we will meet the 100,000 tonnes come the end of this year,” he said.

However, Panday contended that producing 100,000 tonnes of sugar would require approximately 1.4 million tonnes of cane. Adding that sugar production in the first half of 2026 is projected at 29,000 tonnes, with 71,000 tonnes expected in the second half. “How are we going to produce 71,000 tonnes of sugar only from one crop, when from 2020 to now we have never produced close to 71,000 tonnes,” Panday said, adding that such production levels were only achieved in 2023 when he served as a director.

“Sugar production does not only depend on cane in the field…all the factors are important but when you look at what we are doing now, unlike when he was there, we are not cutting young canes anymore…we have approximately or over 1.2 million tonnes of canes that are in the fields now, we will have very low TCTS (tonnes cane per tonnes sugar) and when you look at a conservative figure and I can take it even up to 13 TCTS, we will achieve more than 100,000 tonnes,” Mustapha responded.

However, Panday maintained that even with 1.3 million tonnes of cane and a rendiment of 14 TCTS, GuySuCo would still fall short of 100,000 tonnes of sugar. “I never mentioned 14 TCTS, I don’t know where the member got that figure, I am saying that I would go the highest of 13 (TCTS). The projection here is 12 tonnes cane per tonnes sugar…and [with] over 1.2 million tonnes of cane you will get more than 100,000 tonnes of sugar,” the minister said.

For 2026, GuySuCo has been allocated $13.4 billion, of which $8.4 billion is for current expenditure. The minister disclosed that 81% of the $8.4 billion, approximately $6.8 billion will go towards wages and salaries. However, he noted that this figure does not cover GuySuCo’s full annual wage bill, which he said is approximately $20 billion.

“So, the rest will have to be made up from the sale of sugar,” Mustapha said.

He disclosed that the remaining 19% of the allocation will be spent on fuel (8%), lubricants (2%), other essential materials and supplies (4%), and lorry contractors (5%). The minister also noted that payments to other contractors will also have to be made from sugar sales. “Not all the contractors were paid at the end of December (2025) we have approximately 100 million outstanding which GuySuCo is now trying to get to pay as they sell sugar over the few months,” Mustapha added. Responding to a question from MP Panday on GuySuCo’s internal debts, the minister said these, too, will have to be settled using revenue generated from sugar sales.

Meanwhile, MP Saiku Andrews questioned when the government expects GuySuCo to become self-sustaining and reduce state subsidies. Mustapha pointed to the five-year strategic plan outlined during the 2026 budget debate.

“We are working towards that and hopefully, hopefully we can make a change from this year,” he said.

Andrews expressed concern over the use of the word “hopefully,” stressing that public spending requires certainty. In response, Mustapha said, “I am very optimistic because what we have in the plan, we already start moving in the right direction, over 41% of GuySuCo’s cultivation have already been mechanized, in that plan you will see new machinery being bought in the next five years.”

He added that the plan focuses heavily on mechanisation, noting that prior to 2020, GuySuCo faced significant challenges, including factory closures and worker displacement, which increased production costs. “We are working very diligently, we are working to modernize the corporation, we are looking at the performance of management, managers have to be more accountable now…and we will ensure that the strategic plan of GuySuCo be successful and GuySuCo can return to profitability in 2030,” Mustapha said.

On the mechanisation, the minister assured that workers will not lose their jobs during the upgrade process. He also disclosed that GuySuCo is currently facing a labour shortage and that workers are being trained through various government initiatives.

Moreover, MP Jordan raised concerns over complaints from retired GuySuCo workers, who have reportedly been unable to access their benefits from the National Insurance Scheme (NIS) because the corporation owes the agency. Jordan also said he received similar complaints from workers who took sick leave.

Against this backdrop, the MP questioned the minister on the amount allocated in the 2026 budget to address payments to NIS. The minister said, “None of the money here is budgeted to pay NIS contribution, NIS contribution is being paid by revenue generated from the sale of sugar.”

He disclosed that GuySuCo’s arrears to NIS amount to approximately two years, totalling about $2 billion, but noted that the corporation is working to bring the account up to date. “They are hoping that by mid this year they are able to generate the sum to pay over to the National Insurance Scheme,” the minister said.

MP Campbell also raised the issue of whether the Ministry of Agriculture had approached Minister of Finance Dr Ashni Singh to liquidate the $2 billion owed by GuySuCo to NIS. Minister Mustapha however, stated that while he agrees that the arrears should be settled as soon as possible, he said he does not believe workers are being prevented from accessing their NIS benefits due to GuySuCo’s non-remittance. He urged affected workers to come forward so the matter can be addressed.

He further noted that several discussions have already been held with the Minister of Finance and expressed optimism that the outstanding sums will be paid over to NIS.

---

• GUYSUCO, profitability, turnaround, We Invest in Nationhood, Zulfikar Mustapha

---