The Guyana Manufactur-ing and Services Association (GMSA) yesterday expressed concern over a shortage in molasses and restated a call for urgent action to safeguard the sugar industry.
Molasses output has fallen with the shutting of four sugar estates and the three that are operable have also dropped below sugar production targets.
In a statement yesterday, the GMSA noted with concern that at least one major manufacturing entity, Demerara Distillers Limited (DDL) has had to import molasses to meet its demand for the last two years.
In 2018, the GMSA said it had cause to write Government to guarantee the supply of molasses to small-scale manufacturers. While GuySuCo had been able to maintain a supply of approximately 32 MT per month for small manufacturers, this has not been the case for at least one major manufacturer. DDL has had to resort to importation of molasses to meet its demand and this importation has increased due to the inability of the sugar industry to supply. This situation, and the continued decline of the sugar industry, is a major concern of the GMSA, the statement said.
It noted that key manufacturing entities depend on molasses and these include the rum industry, food processors and pharmaceuticals. The GMSA said that if Guyana’s manufacturing sector is to grow in the future, urgent attention is needed to ensure the supply of raw materials. The importation of molasses is not sustainable and could affect Guyana’s competitiveness in the long run, the manufacturers said.
The Association said that the downscaling of the industry, with the closure of four of seven sugar estates, has had dire consequences on the economy and other sectors which depend on the industry.
“The GMSA is calling for a democratically elected Government to give priority to the resuscitation of the sugar industry through an approach which involves public-private partnership”, the statement added.
