Last week, we concluded our discussion of the two Supplementary Estimates totalling $40.8 million that the National Assembly approved three weeks ago. Of this amount, $9.462 billion relates to the Guyana Sugar Corporation (GUYSUCO) which has been making significant losses over the last 14 years (except for 2016) despite massive subsidies from the Central Government to assist the corporation with not only its operational costs but also its infrastructure development programme.
GUYSUCO’s revenues from the sale of sugar declined from $23.160 billion in 2014 to $8.161 billion in 2021, an almost three-fold decrease. Operational costs also decreased from a massive $41.985 billion to $12.802 billion over the same period due mainly to the closure of the four loss-making estates at Skeldon, Rose Hall, Enmore and Wales in 2016. This has resulted in a decrease in the corporation’s operating loss from $18.825 billion in 2018 to $4.637 billion in 2021. According to its Chief Executive Officer, GUYSUCO recorded a loss of $10.2 billion in 2022. The corporation’s financial performance over the years raises serious questions about the sustainability of the Treasury bailout and for how long more it would be able to produce sugar at a cost of about US$1 per pound when the world market price is around US$0.33. The re-opening of the Rose Hall Estate is likely to compound the problem.