The new management of the Guyana Sugar Corporation (GuySuCo) has set a relatively low target to produce 90,000 tonnes of sugar this year. In a press conference on Monday, the company’s Chief Executive Officer, Sasenarine Singh is optimistic the target will be surpassed even though he hinted this may be impossible due to the lengthy rainfall. At the most optimistic the target is likely to be reached and if it is not, GuySuCo has already found something to blame- “the rain.” It cannot be ignored even when low targets are set, excuses are found why they are not met or could not be met.
In the real world, Guyana’s sugar continues to be produced in excess of what it is sold for on the world market. On Sunday November 22, 2020 former Minister of Finance Winston Jordan, in a facebook interview with Rickford Burke’s “The Conversation,” presented the hard, cold facts about sugar’s viability and profitability. He reminded, sugar is being produced in excess of US 35 cents per pound and selling at approximately between US 9-12 cents, and the company having a labour cost of 65 percent of its revenue cost. Calculate the difference in cost of production vis-à-vis sale; the difference in revenue Guyana is losing or giving away. At this price sugar is neither profitable nor sustainable.
According to Mr. Jordan, “sugar has never been profitable in Guyana without premium [preferential] price” such as EU/ACP Agreement and LOME Convention, and with the loss of these preferential pricing sugar is in “new debt.” Since then governments have had to subsidise an industry, to the sum of tens of billions of dollars, that is frankly dying in its present configuration. Mr. Jordan went further to say “sugar was profitable when labour was free….and the sweetness of sugar started to become bitter” when labour had to be paid, dating back to the post-emancipation period, through indentureship and present. Nobody has disputed the statistical realities. Not even the PPP/C government.
Taken in the context of the above, Mr. Singh has to justify his job and promises, dare it be said utopian, that he can turn around GuySuCo. All sorts of figures and excuses why targets cannot be met will be fed to the public, however unrealistic. Since the return of the People’s Progressive Party/Civic (PPP/C) to power no less than $5 billion dollars has been set aside from the Consolidated Fund to finance the industry. In street language, the company has been given ‘money to burn.’
Understandably, the socio-economic impact on sugar workers and their communities cannot be ignored given GuySuCo’s problems. This is the point the PPP/C keeps making, even as the same government continues to ignore the socio-economic impact of other workers in other sectors and their communities. GuySuCo’s promises come at a time when it should be asked, whether this is really about the socio-economic impact of the workers and their communities or the ego of politicians and their desire for political survival/dominance.
Guyana, the third poorest country in South America and the second poorest in CARICOM, is subsidising the taste of rich external markets (countries). This is the height of economic stupidity. The Government is giving GuySuCo money to produce sugar at a higher cost and sell it at a cheaper cost. It makes more sense to divert the money into developing the skills of sugar workers through retraining and education. This would make them marketable either as entrepreneurs or to work in other industries.
One of the sad things about Guyana’s politics is its ethnic polarisation and concomitant thinking. Even if a logical argument is made, with all the hard, cold facts presented, it is likely to be rejected. If the argument does not come from the leaders representing the affected group, political parties and their supporters will seek opportunities to scream discrimination. A deeper ugliness that prevents action is the fear of being so accused. The debilitating politics allows for irrational decision-making, abuse and wastage of money. The PPP/C government is benefitting from it.
Not until people are prepared to say it as it is will wastage stop and those who the very government claims to care about get opportunities to do better with their lives. The present GuySuCo’s present management knows as the previous-Raj Singh who “picked up his georgie bundle and left for his home in New Jersey” as former Minister Jordan reminded- that he too can do the same when he does not deliver. The quixotic-idealistic, unrealistic, impractical- attitude will continue in a polarised society because accountability is not universally valued but convenient.
