EU proposal to reduce sugar price is a 'deep betrayal'
--Says Presidential Adviser Chandarpal
By Chamanlall Naipaul
Guyana Chronicle
July 5, 2004
THE recent proposal by the European Union (EU) to reduce sugar price by 20 per cent by 2005, and by 33 per cent by 2007 has been described by Presidential Adviser on Science, Technology and the Environment, Navin Chanderpal as a "deep betrayal".
Speaking last Saturday at Guyana Sugar Corporation's (GUYSUCO's) honours roll ceremony at Skeldon Estate, Chandarpal said the EU proposal is both a breach of agreement and understanding because the EU had given the undertaking that reduction in sugar prices would have been implemented in stages.
Noting that the sugar industry is facing a challenge, he exhorted that it should be used as an occasion (for stakeholders) to be inspired to grapple with the situation. He recalled that many lessons in the past have "steeled us".
Adviser Chandarpal pointed out that Guyana had already embarked upon a strategic plan beginning in 2001 and concluding in 2005 to reduce cost of production while promoting greater efficiency in the sugar industry. This plan has proven to be a visionary one, he said.
Rejecting the contention by some in the National Assembly that Guyana is taking a "gamble" with sugar, Chandarpal stressed that it cannot move away from sugar because it is the foundation of Guyana's economy. He noted that the sugar industry contributes 16 per cent to the Gross Domestic Product (GDP). It employs over 18,000 persons directly, creates jobs indirectly for about 10,000 to 15,000 persons and brings in nearly a quarter of Guyana's foreign exchange earnings.
"Sugar is the centre of life in many communities, and as such we cannot move out of sugar," Chandarpal assured his audience.
He said the global reality is that the "mighty and powerful" countries are trying to use their historical advantage to displace the developing countries. Consequently, they (the developing countries) have to become part and parcel of the fight to ensure that they are not trampled upon. However, he conceded that in that process there would be some damage to developing countries like Guyana.
In this situation, Chandarpal said, other workers should strive to emulate the champion workers so that everyone would become a champion worker in his or her own right. The former Minister of Agriculture issued a call for collective efforts and leadership within the industry, which he said, is the only way the challenges would be successfully overcome.
He also issued a call for the workers, trade unions and management to forge a relationship, which will result in the sugar industry achieving realistic results. Such results would see workers enjoying a satisfactory level of comfort while the cost of production would be "manageable".
Acknowledging the benefits of the state-of-the-art factory, which is to be built at Skeldon following the signing of a contract with a Chinese firm, Chandarpal emphasised that the facility, which will also co-generate electricity, would bring significant reduction on the dependence on fossil fuels. There will be environmental benefits as well as a decreased strain on foreign exchange reserves.
Mr Ronald Alli, Chairman of GUYSUCO's Board of Directors, noted too that when the new factory goes into operation it will release ten megawatts of electricity into the Berbice grid thus bringing an end to the unreliable supply of electricity Berbicians are receiving at present. He disclosed that the co-generation plant would have a maximum capacity of 30 megawatts, some of which will be used internally by the sugar factory and also by the refinery planned for the location.
Acknowledging that Berbice Estates are the front-runners in local sugar production accounting for 61 percent of total production, Alli, however, disclosed that they are being challenged by the Demerara Estates, which in recent times have reduced their production cost by ten cents.
Alli also disclosed that GUYSUCO has embarked on the expansion of land cultivation to increase production to meet the projected national target of 450,000 tonnes when the new factory goes into operation. In this regard, GUYSUCO has succeeded in accessing funding from the Caribbean Development Bank (CDB).
Chief Executive Officer of GUYSUCO, Mr Michael Boast, noted that Guyana has the potential to meet the challenges facing the sugar industry, but in meeting those challenges it is essential to increase yields in all estates. Boast recalled that this was done in the past and he saw no reason why it cannot be repeated.
The CEO said that among the Caribbean countries, Guyana, because of its economies of scale, has the best chance of survival in the new global situation with respect to sugar
The reduction of sugar prices was inevitable, Boast observed, adding it was only a question of when and how. Therefore, he said, Guyana is moving in the appropriate direction. He stressed the need to change the way business is done, describing the situation as one in which you "adapt or die".