Indian company looks to invest in Guysuco

Dear Editor,
ABOUT a month ago, I was party to an interesting discussion with some gentlemen regarding the Guyana Sugar Corporation (GUYSUCO). The discussion of this sweet entity in its current state had a bitter taste on every tongue.
GUYSUCO, based on financial and media reports, has been experiencing significant production and management problems over recent years. These issues are highlighted almost weekly via the media. Compounding those problems are international subsidies and market completion, local politics and the representative workers’ union’s consistent opposition to necessary operational adjustments for viability of the industry.
This industry has been a perennial burden on the state’s treasury, with billions of dollars being wasted on underperforming projects such as the Skeldon facility and pricing subsidies. In the last 18 months alone, over $21 billion had to be pumped into the entity as a bailout by the state. This is estimated to be about 1.3% of the GDP. That amount is more than the $15 billion allocated for infrastructural development and maintenance of roads and bridges nationally, and the $20.6 billion to improve drainage, irrigation and increase cultivation in the agriculture sector.
GUYSUCO’s decline in 2016 was pegged at about 18.7%. In its present condition, the state can no longer sensibly continue nor afford to fund GUYSUCO’s existing life-line. The PPP and some senior labour unionists have been relentlessly critical of the APNU+AFC government’s proposition for the inevitable and complete privatisation of the entity. The opposition has even appealed to the sentiments of its proletariat by mainly insinuating racial victimisation as a basis for rejection of the government’s proposal.
As a tax-paying citizen, and a lover of local sugar, I would neither like to see GUYSUCO die, nor continue to be a burden to the state. Such crossroads in the reality of life often require biting the bullet or the application of tough love to firm resolves.
Our discussion culminated with a consensual hypothesis. We feel that it is opportune for those advocating GUYSUCO’s retention to put their monies where their mouths are and buy out the industry.
This, possibly through stockholding, could allow the sector to rebound and retain economic relevance. Several mechanisms could be employed to catalyze profitability under such a venture, supported by increased controls, performance-based remuneration at all levels, accountability and prudent management of operations from field to factory. Additionally, the initiative could be strengthened through strategic divestments into new and upgraded value- added products, such as ethanol, among other possibilities.
Surely, the success of such a venture would essentially keep this traditional sector alive and the sweet taste of local sugar on the taste buds of all Guyanese for years to come.
Regards,
Orette Cutting

In the last 18 months alone, over $21 billion had to be pumped into the entity as a bailout by the state. This is estimated to be about 1.3% of the GDP.