Sugar production for the first crop this year as of May 6th was 67,299 tonnes – the lowest figure for over two decades – and the output from the US$200M flagship Skeldon factory was only 6,596 tonnes which was surpassed by Uitvlugt, historically the poorest performer.
Former PNCR parliamentarian and former sugar industry executive, Tony Vieira noted in the letter columns of this newspaper on Monday that up to the weekend of May 6, the sugar industry produced a total of 67,299 tonnes of sugar which he termed a new low in first crop production for over 20 years. In 2011, he said that at the end of the first crop the industry had produced 106,627 tonnes of sugar.
GuySuCo CEO Paul Bhim told Stabroek News on Monday that the information provided by Vieira is correct but he noted that the former MP did not mention that the first crop figure for last year included canes which were cut in the last crop of the previous year, 2010.
While admitting that production for the first crop of this year will be less than last year, Bhim told this newspaper that at the moment weather conditions continue to hamper the prospects of surpassing the target set for this year.
Vieira stated in the letter that canes are still being reaped even as the May/June rainy season is upon the country but Bhim refuted this noting that GuySuCo has stopped reaping canes at all estates across the country with the exception of Blairmont.
Vieira also flayed the management of the corporation and the government over the underperformance of the multi-million dollar Skeldon sugar factory. He said that “the sinking flagship at Skeldon, a monument to Mr (Bharrat) Jagdeo’s disastrous tenure as president of this republic and the incompetence of Robert Persaud and the Board of GuySuCo“, produced 10,435 tonnes of sugar in 2011 and 6,596 tonnes in 2012.
Bhim in response stated that since Skeldon was a mechanized operation, the weather conditions there have severely hampered production. He said that at the moment, 66% of the canes at the East Berbice Corentyne estate are still waiting to be ground and he posited that the canes from this crop may be taken over to the next crop which starts in July.
Vieira in his letter also stated that the Skeldon estate was traditionally the best yielding estate of cane and sugar per acre and was the flagship of Bookers and then GuySuCo from 1976.
However, he said that because of the intermittent grinding due to the low rate of harvesting in the rain, the US$200M Chinese-built factory becomes completely uneconomical to operate and he asked why the factory was still running. He said that only three factories produced sugar during the week ending May 6, those being Rose Hall (79 tonnes), Blairmont (139 tonnes) and Enmore which produced 156 tonnes.
“What is the point of keeping these factories grinding through the rain with these ridiculously low weekly performance figures?” Vieira questioned. He charged that it is expensive, wasteful and reflects poor management on the part of the corporation, ”since it does untold damage to the cultivation and deprives the 50-odd year old factories of badly needed maintenance“.
He said that an immediate commission of enquiry should be called to address the situation and he urged the Parliamentary Opposition to play a role in the process.
The sugar industry has been plagued by problems in recent years and the government has expended major sums to improve production. However, industrial action, poor worker turnout as well as low output of cane have created headaches for the management of the corporation.
In April this year GuySuCo announced that the troubled Skeldon Sugar factory is set to undergo major rehabilitation works in the coming months in order to have it fully operational. This includes the redesigning and re-engineering of several aspects of the troubled facility.
Bhim noted yesterday that the Chinese company CNTIC is still involved in the operations at Skeldon, providing technical support and training to the GuySuCo personnel there on a short term arrangement. He said that there is one expert in particular who is providing assistance to the operation of the factory and that individual’s tenure will come to an end later this year.
GuySuCo is also working with a South African firm, Bosch Group of Companies to remedy the major bottlenecks at the facility which have been identified and which will be attended to during the out-of-crop season.
