A shipment of about 2000 tonnes of brown sugar from Guatemala is expected to arrive in Guyana today, the first time in around 19 years that the sugar corporation has had to this in order to meet its lucrative export commitments.
According to GuySuCo’s Marketing Director Nisa Surujbally, this move was necessary since the recent heavy rainfall has caused a delay in the production of the first crop. “The weather has not been on our side”, she told Stabroek News, and consequently these steps are necessary, she explained.
The Marketing Director also told this newspaper that this was not an unparalleled occurrence since other sugar producing countries in the region import sugar from other territories when necessary. She also said that this was not the first time GuySuCo has done this, since in the 1980s this practice was also done. She also stated that such a measure may have been implemented in the early 1990s as well.
If all goes according to plan, this imported batch of sugar should go on sale by next week, Surujbally said.
Meanwhile Minister of Agriculture Robert Persaud described the situation yesterday as an “unfortunate one” but explained that it was a decision taken after careful consideration by the Corporation’s management. He said that it was first discussed by the previous Board and has now been ratified by the recently formed Board. This initial supply is to be viewed as a “buffer supply” to safeguard against any possible shortage locally.
Persaud further stated that the Board’s decision had important economic implications. According to him, GuySuCo found itself in a position where it could either save or lose US$2.7M. He explained that in the context of the declining sugar production by GuySuCo and the adverse effect the weather was having on the current production, the sugar corporation may have found itself in a difficult situation meeting the local demands and international requirements.
Meanwhile, Persaud told Stabroek News that, the imported sugar is being purchased at the cost of US$394 per metric tonne. He said that it was not unusual for GuySuCo to import sugar but stated that it was white sugar that was normally imported by the corporation, as opposed to brown sugar.
Further the Minister explained that Guatemala was identified as the best source to acquire the sugar through sugar brokers.
GuySuCo’s declining level of sugar production has come in for sharp criticism from the government, prompting changes in management to help resuscitate the industry. Recently, former Finance Director Errol Hanoman was named as the new Chief Executive, replacing Nick Jackson who is taking up a position in Swaziland. He is slated to officially take over on February 14.
Further a new board headed by Permanent Secretary in the Office of the President, Dr. Nanda Gopaul was composed. Other members of the Board are Geeta Singh-Knight, Keith Burrowes, Dr Rajendra Singh, Donald Ramotar and Jangbahadur Raghurai.
The corporation has set itself a target of 290,000 tonnes of sugar for this year, but the Agriculture Minister had previously told members of the media that the figure is subject to a review based on the rainy season. According to him, the heavy rainfall was one of the factors that affected the industry last year releasing.
Last year, when the Corporation found itself behind the production rate, there had been suggestions from some quarters that GuySuCo may have needed to implement measures similar to what are being enforced now. However, these were not implemented at the time.
