The Alliance for Change (AFC) has raised concerns about the state of the Guyana Sugar Corporation (GuySuCo) and the broader industry.
During a press conference on Friday, APNU+AFC Member of Parliament Khemraj Ramjattan said that as it stands, GuySuCo’s production levels have fallen significantly short of the revised target for 2024, which stands at 100,000 tonnes.
To date, the corporation produced only 6,738 tonnes in the first crop against a target of 37,000 tonnes, and approximately 25,000 tonnes in the second crop, which is supposed to yield 63,000 tonnes. This means that the company has achieved less than 40% of its adjusted production goal, raising questions about its operational viability.
Ramjattan criticized former GuySuCo Chief Executive Officer Sasenarine Singh’s claims earlier this year about increasing production through expanded acreage and modernization, calling them “poppycock and propaganda.” He noted that Singh has since been reassigned to Brussels, with a new appointee, Paul Cheong, taking his place, signalling a lack of stability in leadership that has plagued GuySuCo.
The underlying problems, Ramjattan argues, are far more systemic than mere changes in management. He pointed to the disastrous US$200 million investment in the Skeldon sugar factory under the Jagdeo administration —deemed the worst investment since independence—as a major financial burden. This year alone, the PPP/C government has allocated $9.2 billion in subventions to GuySuCo, contributing to an estimated total of $34 billion since 2020.
“The sweet talk of improvement in production was thus all hollow,” Ramjattan stated, asserting that the government’s rhetoric serves only to create false expectations among its support base while perpetuating mismanagement and corruption in the industry. He emphasized that the sugar sector has been in decline since Guyana lost its preferential prices in the European Union market, leading to unsustainable production costs that are currently double the selling price.
The implications of this decline extends beyond financial woes; Ramjattan noted a significant reduction in the workforce as younger generations turn away from what they perceive as backbreaking labour in increasingly harsh conditions. This trend risks perpetuating poverty among rural communities, he warned, suggesting that continued financial investment in an unprofitable sector is economically irresponsible.
Additionally, the future of the Guyana Agricultural and General Workers Union (GAWU) as a union is precarious, according to Ramjattan. He argued that modernization efforts and potential workforce reductions could lead to diminished union dues, compromising GAWU’s financial health. This situation could force the union into a position where it is unable to advocate for the best interests of its members or the industry at large, creating a cycle of dependency on government subsidies.
He also rapped GAWU for what what he described as the “pretended” alarm sounded over GuySuCo’s performance.
GAWU on October 28 expressed deep concern over poor production at GuySuCo and launched a stinging attack on the management of the corporation. Its statement came just days after Stabroek News had reported on dismal sugar production figures despite billions of dollars being poured into the industry, the purchase of machinery and the hiring of experts.
As the principal bargaining agent in the sugar industry, GAWU said that it is “deeply concerned over the current trend of sugar production”.
“From our perspective, the industry’s sad situation cannot be delinked from the management of its cultivation and agricultural operations”, it argued.
Before the commencement of the crop, the union said it drew GuySuCo’s attention to several important issues that required intervention.
“It appears that our concerns were brushed aside. Recently, we have expressed concern about the production rate and trajectory. It seems that those charged with agricultural management in the industry have, for reason/s best known to themselves, chosen to turn a Nelson’s Eye”, the union lamented.
Given the conducive weather for mechanised sugar operations over the past few weeks, GAWU said it is puzzled that daily production levels remained constrained.
“It begs the question: What are the factor/s which have inhibited production levels? The industry remains heavily reliant on manual cane harvesting complemented by mechanised loading, a practice that is now decades old.
“The major challenge revolves around the quality of canes being produced. While the industry cane yields have been higher than anticipated, though well below their potential, the sucrose content remains depressed. We are conscious that the El Nino drought conditions would have had an impact. However, given the collective managerial experience in GuySuCo, better planning could have been advanced to mitigate some of the challenges”, the union argued.
