Dear Editor,
It is very clear that the APNU+AFC regime is determined to close the sugar industry. Their actions thus far have clearly indicated this position.
This will prove to be one of the biggest mistakes in the economic history of our country.
While it is true that the industry is experiencing some difficult times, the main reason for these difficulties lies beyond our control since it was the decision of the European Union (EU) to end its agreement with the sugar-producing African Caribbean and Pacific countries (ACP). This has led to some industries being forced to close down. Many such industries in the Caribbean have gone under.
While this poses a great problem for Guyana, it also opens the opportunity for the industry to survive and become stronger; to offer greater job opportunities with a higher level of skills.
But to do this, we must create more revenue streams in the industry to make it more flexible and viable. This calls for more investments in the industry. Such investments will pay great dividends in the medium and long terms.
Even though the price of sugar on the world market is now low, it will not stay that way forever. The demand for cane sugar is growing as compared to beet sugar. However, we know that the industry is capable of producing other products in demand. Fuel alcohol is one such product. We can reduce the importation of gasoline by 10% by blending gasoline and fuel alcohol for vehicle use. This has proven to be profitable in many countries. We have a sizable market right here in Guyana and the export market also has good prospects. This is also another way to transit from using fossil fuel, which the government stated it intends to do.
The industry can also accommodate a distillery by using its molasses and add value to it. It has a big market in Caribbean rum producers and can be a very profitable venture.
Moreover, we have already started to generate electricity from the bagasse produced. This needs to be expanded to at least two or three other estates. This will greatly assist in generating more energy from renewable resources.
The industry must also work to establish a refinery to produce high quality industrial sugar. The price of this sugar is much higher than raw sugar and far more stable. GuySuCo can garner more markets in the Caribbean for industrial sugar since we will have an advantage by being a part of the Caricom treaty arrangement. India’s sugar industry also contributes to the paper industry by producing specialty sugars, and since Guyana enjoys a good relationship with India, such a partnership could form the basis of a stronger relationship.
But judging from all indications, the regime is clearly not thinking in this direction. They seem hell bent on closing down the sugar industry. At the moment, they are dismissing highly qualified technical personnel and replacing them with pensioners. These people are being paid huge salaries. Recently, they employed nine persons who are earning more than $200M per year.
The regime seems intent on running the sugar industry down and enriching their friends at the expense of GuySuCo and Guyana.
Clearly, the industry is at a crossroads. With sound investments, it can become one of the most profitable industries in Guyana. It should not be allowed to be so callously closed.
Yours faithfully,
Donald Ramotar
