Dear Editor,
Sugar prices are reaching a 3-year high due to the output shortage in top sugar producing countries of Thailand, India and Brazil caused by drought. This is great news for GuySuCo as it comes at a time when there is also a deficit in sugar beet output in the USA. At the time of rebound from the Coronavirus Guyana will have an opportunity to accelerate the recovery of the sugar belt, recreating jobs and reopening Estates. It’s also an opportunity to secure long term overseas supply contracts with the necessary price protections in place while astutely carving out a strong position at the high end of the market where a premium is paid for Demerara Brown Sugar. Most local Guyanese would agree that the Enmore Crystal is the best our industry has to offer. Thus supporting the call for the Enmore Estate reopening.
The current oil price pressure should also be providing the lessons to be learned for improved financial security across our multiple commodity markets via price hedging and use of other sound financial instruments. It is unfortunate that the current administration did not hedge the oil prices for the year, which have now hit a 45-year low. Luckily gold is on the upsurge. Hopefully the opportunity will be taken to leverage the current market dynamics to our favour by using the appropriate financial instruments to reduce the Nation’s financial risk exposure while securing top dollar for our products.
Yours faithfully,
Jamil Changlee
Chairman
The Cooperative Republicans of
Guyana
