The European Union (EU) is expected to plug €24.9 million into the local sugar sector this year as it continues to assist the government in reforming and improving the competitiveness of the sector.
According to a release from the EU yesterday, the funds will be released once the financing agreement between the two parties is signed, as part of the second multi-annual Sugar Programme for the period 2011-2013.
According to the EU, in December last year €12.5 million were provided to the authorities to support the sector and this was part of the arrangement for the 2007-2010 sugar programme.
It was noted that from 2006, when the programme began, the EU had made available €72.5 million ($19.3 billion at today’s exchange rate) to the sector.
The EU stated that it will continue to support the government’s policy to reform the sector by upgrading the Guyana Sugar Corporation’s (GuySuCo) factories, increasing sugar production and mechanizing GuySuCo’s field operations in particular, thereby improving the cost effectiveness of the industry. The EU also cited the importance of the establishment of the sugar packaging plant at Enmore.
The EU assistance is provided via direct budget support and the disbursements are made based on the achievement of the performance indicators which monitor the implementation of the sector policy on sugar.
It was noted that funds are also channelled towards studies, evaluations and audits to ensure effective implementation.
Guyana’s sugar industry has been facing difficult times recently as production output fell below the target set at the beginning of the first crop for the year. Recently, GuySuCo’s head Paul Bhim told Stabroek News that the corporation was working towards improving its production capacity this year and the entity was banking on worker turnout among other issues to achieve its target.
There have also been outstanding issues with the unions representing workers and president of the Guyana Agricultural and General Workers Union (GAWU) said recently that the corporation needed to improve its planting methods as well as the scientific aspects of its human resource capacity to improve sugar output.
The problematic Skeldon sugar factory has also been a sore-point for the industry as the US$200 million investment has been plagued by mechanical and other problems. The factory was touted as a main bolster to the sector but its expected support has fallen below expectations. Several identifiable defects at the factory are currently being addressed by GuySuCo.
According to the EU, it has formulated its overall response strategy following the submission of the Guyana National Action Plan of Sugar in March 2006, which emphasizes the enhancement and competiveness of the sector.
The approach taken by the EU was reaffirmed late last year for the 2011-2013 sugar programme.
