Dear Editor,
The sugar corporation registered a loss of $4.1B for last year. If this is the reality for 2008 then what can we expect in 2009 when the greater fraction of the EU price cut kicks in. The future of sugar undoubtedly is in jeopardy and some of it may be attributed to the low production arising out of unfavourable weather, but what makes it even worse is that there is no plan to diversify the sugar industry but there is a plan to expand it. Certainly you don’t need an MBA to understand that if the sale price of a commodity has been significantly reduced then the most prudent thing to do is to produce less of that commodity to reduce your losses and diversify your business to improve on its viability.
I understand a new management structure was introduced, but will this solve the problems the industry is facing? Will the new structure reverse the trend of $4.1B loss? What if production continues to slide in 2009 under the new management structure, are we going to change the structure again? I think the government needs to get on board with a diversification plan for the sugar industry and not stick its head in the sand like an ostrich assuming all is well with putting down a new factory at Skeldon.
Yours faithfully,
R. Singh
