Finance Minister Dr Ashni Singh has referred to last year as a “disappointing” one for the sugar industry saying yesterday that several factors contributed to the weak performance, including the continuing problems at the Skeldon factory.
Singh delivered his budget presentation before the National Assembly and when he turned his attention to sugar, he concluded that 2010 was ripe with problems in the industry. He pointed to issues such as irregular weather patterns and poor labour turnout.
But things are likely to turn around in 2011, he said optimistically, provided that the industry is able to increase the cane supply, with expanded acreage under cultivation along with higher levels of participation by private cane farmers.
He said too that the process of mechanizing the operations of the industry will advance, with the acquisition of additional mechanized harvesters, cane loaders, tractors and haulage units.
In addition, Singh said repairs should be completed on the No 1 boiler at the new Skeldon factory, and other defects corrected, with the expectation that the factory will function at full capacity by the second crop.
Singh pointed out that Guyana Sugar Corporation production target for this year has been set at 298,879 tonnes, 35.3 per cent above the 2010 level of production. Production was dismal last year with the industry managing just over 220,000 tonnes.
He said also that other factories will be subject to heightened maintenance and key equipment replacement so as to increase efficiency of operations. He observed that the Enmore packaging plant will be completed and brought into operation increasing value-added output.
According to him, GuySuCo is projected to incur total capital expenditure of $4.3 billion in 2011 on these and related endeavours.
With respect to the problems which the industry faced last year, Singh said that the irregular weather patterns contributed to loss of cane as a result of the limited availability of water irrigation at times. He said that also hindered cane transport from field to factory resulted in the loss of sugar content.
The crop attendance was some 52 per cent, he said, as compared to 62 per cent and 72 per cent in 2009 and 2008 respectively. Singh explained that the situation is partly reflective of structural changes in the labour market induced by alternative employment opportunities being pursued by the existing workforce.
