Conditional survey to determine phased reopening of sugar estates – Agriculture Minister

…says reopening of estates is not a political gimmick

A conditional survey currently underway will guide the Peoples Progressive Party Civic Government on how it proceeds with the reopening of the three closed sugar estates with an objective to revive the cash-strapped and heavily indebted industry.
This is according to Agriculture Minister Zulfikar Mustapha, during a recent appearance on the televised programme “Insight”.
Back in 2016, the former A Partnership for National Unity /Alliance For Change Government closed the Wales Estate and the following year, shut down the Enmore, Rose Hall and Skeldon Estates – putting over 7000 sugar workers on the breadline. The downsizing of the sugar industry saw only the Uitvlugt, Blairmont and Albion Estates in operation.

However, the PPP/C had promised to reopen the closed estates, re-employ the sacked workers and revive the sugar industry once it gets into office. After taking office last month, the PPP/C Administration last week announced in the 2020 Emergency Budget that some $5 billion will be injected into the sector for the phased reopening of the closed estates. An initial $3 billion was earmarked for critical works this year as the Government carries out an assessment on the state of the assets and the level of reinvestments needed at the Enmore, Rose Hall and Skeldon Estates for their reopening.
In fact, Minister Mustapha disclosed during the programme that a team has already been assembled and is on the ground conducting the conditional survey. He noted that once this is completed, they will present the findings to President Dr Irfaan Ali and the Cabinet for consideration on the way forward.
“I had a meeting with GuySuCo (Guyana Sugar Corporation) and NICIL (National Industrial and Commercial Investment Limited), and His Excellency met with us and give us certain directives. So, we are working with that and within two weeks we should have a plan and that conditional survey, which I can present to Cabinet and then we can disburse funds in these areas,” the Minister noted.
He added that “the reopening will depend on [the] outcome of [the] conditional survey. First, we have to look at the conditions of the factories, we have to see what is needed in those factories and then we have to look at the field. This is very important because you can’t have a factory without any canes in the field to supply the factory.”
According to the Agriculture Minister, the growing of canes and the production of sugar requires a lot of infrastructural work and support systems such as dams, canals and bridges. He further explained that they will also have to look at issues such as the condition of the fields for replanting of canes.
“I went to closed estates at Skeldon and Rose Hall [earlier this month] and spoke to former sugar workers and they said when they look at the systems in place, a lot of work will have to be put in to get the estates up and running again. So, the major thing for me right now is this conditional survey because based on this conditional survey then a decision will be taken which one of the estates will be reopened first, which will be done in a phased manner,” he stated.
Meanwhile, with regards to the Wales Estate, however, it will not be reopened due to the extreme deterioration of the factory. Instead, the PPP/C Government has announced that it will be used to create opportunities and employment under the newly established Wales Development Authority.
Minister Mustapha explained that this will not only create much-needed jobs for surrounding communities but small businesses will also receive assistance with the installation of a business incubator there.
He pointed out that these steps taken by his Government to return the industry to a state of viability is because of its recognition of the important role sugar played in the past and will continue to have in Guyana’s future.
According to the Minister, by the end of this term in office, the PPP/C Administration will have a total of six estates functioning.
Mustapha, who is PPP’s Executive Secretary, recalled that when his party announced its plans to reopen the closed estates, the former coalition regime called it a political gimmick.
“When we said in the manifesto, we will reopen the closed sugar estates, the then Government – the APNU/ AFC Government, said it was political gimmick. But now we are seeing the reality… as Minister of Agriculture, I’m extremely pleased and happy that this is now coming to reality, where money has already been budgeted and we have started work on the ground to reopen these estates,” he asserted.
The Agriculture Minister went on to respond to criticisms that the ailing sugar industry will continue to bleed the treasury, stating that GuySuCo is much more than sugar.
“GuySuCo is not only the production of sugar canes – there are other spin-off effects of sugar production. GuySuCo was taking care of D&I (drainage and irrigation) systems, GuySuCo was taking care of the sports grounds, GuySuCo was taking care of primary healthcare within those communities and had their dispensary there. So, GuySuCo is much more than sugar,” he outlined, adding that the reopening of the estates will re-energise communities, increase the standard of living and boost business activities across the country.
The Minister further stated, “For the survival of GuySuCo, we cannot only produce raw cane sugar. We have to diversify, we have to modernise our products.”
Vital to the industry’s survival too is prudent management, Mustapha highlighted. He noted that in addition to installing a new Board, they will also reorganise and resize GuySuCo’s management across the country.
Turning his attention to the three operating estates – Uitvlugt, Blairmont and Albion – Minister Mustapha said the priority will be capital investments.
“Over [the] last five years, management informed me that there were no major investments or no major capital works carried out in these estates. The former Government left these estates [to function but] they neglected them and I think it was only time, if they, APNU/AFC Government, would’ve returned to Government, for these three sugar estates to close as well. That would’ve been the end of sugar production in Guyana,” he posited.
Since being downsized, GuySuCo has been struggling to meet its production target and has had to revise the target on several occasion. In fact, only earlier this month the Guyana General and Agricultural Workers Union (GAWU) criticised the sugar corporation for failing to meet its already lowered revised production target for this year.
The Union body said the industry was heading towards its worst production output in history and blamed the “lackadaisical” attitude of the leadership of GuySuCo for this state of affairs.
However, in an effort to bring back the sugar sector to its previous state of profitability, the PPP/C Government had approached India for assistance with the reopening of the closed estates. The Indian Government had in the past offered technical assistance to Guyana in the sugar sector but this was never capitalised on by the former coalition Government.
Meanwhile, the Guyana Manufacturing and Services Association (GMSA) has also called on the new Government to revive the closed estates in order to boost the production of molasses, which is a key and critical ingredient in several industries here.
Demerara Distillers Limited (DDL) is the largest local consumer of molasses and since the closure of the estates, the beverage giant has had to import molasses from various countries including Guatemala and Mexico, which it is currently buying from. Although Uitvlugt was producing molasses, the quantity was insufficient, thus forcing DDL to import the deficit amount for its production.