Home Letters Little room for issues of the past in the sugar industry
A recent report on the Indian Sugar Industry reported a challenging cost structure wherein the cost of production is too high compared to market prices. This issue had led to Government-subsidised exports in the past, but these subsidies will not be implemented this production season, according to the recent report.
Guyana’s sugar industry has historically been in a similar situation, and will require a restructuring programme to turn a profit quickly. Although it may be comforting to know that these challenges are shared by others, it is also concerning, given the current global economic environment.
The support of the union, the impacted communities and the region will continue to be even more important if a quick turnaround in the industry is to be achieved.
The increasing competitiveness of the global market, due to weaker demand, leaves little to no room for continued output underperformance going forward, if cost reduction is to be put on the right track while increasing employment.
Our national economy will have significant exposure to the industry in coming years, and delivering on the recent regional agreements put in place would be important in achieving a successful turnaround.