Private farmers to provide 34% of canes for Skeldon Estate

…“we have had so much corruption, wastage in GuySuCo” – Agriculture Minister

Private farmers will be required to provide 34 per cent of the cane needed at the Skeldon Sugar Factory when it resumes operation in order for the estate to be successful.

This was according to Agriculture Minister Zulfikar Mustapha on Saturday when he met with private farmers, who cultivate lands at Skeldon and Crabwood Creek, Region Six (East Berbice-Corentyne).
Minister Mustapha noted that skilful management of the estate will be a key component if the estate is to succeed.
As part of the initial stages of proprietary arrangements being put in place for the reopening of the Skeldon Estate, Mustapha said private planters will have to return to the land and start growing canes.
To this end, the Minister met with the farmers to ascertain issues which they are likely to encounter if they are to supply canes for the Skeldon Sugar Factory.
“This Estate should have been a model sugar factory in Guyana and around the Caribbean. However, it did not live up to its expectations but if we work together, we can make it the model factory that we want it to become,” Mustapha told the farmers.
He explained that they will have to make a tremendous contribution toward the successful operation of the factory.
“We don’t want to fail this time around. That is why I am here to listen to some of the issues that you want to resolve before you start to cultivate sugarcane again,” he indicated.
One of the farmers, Anand Singh, said one of their biggest concerns is the lack of funds to go back into cane cultivation.
“We have a large loan at the bank and we failed to make payments to the bank. So, we cannot approach the banks again for any additional loans. We want a grant from the Government so that we can resuscitate our farms,” he told the Minister.
Together, all the farmers at Crabwood Creek and Skeldon have a combined 4600 hectares of land, which was once under cane cultivation.
About one-third of that was put under rice cultivation after the Skeldon Estate went out of operation.
Another private farmer, David Subnauth, told Mustapha that the onus is on the Guyana Sugar Corporation (GuySuCo) to succeed. He said if the Corporation fails, then they will fail as well.
He suggested that the fields which are under GuySuCo’s control in the Upper Corentyne be given out to private farmers. He further recommended that each farmer be given 20 acres to cultivate in two crops per year.
“They should be able to produce a minimum of 4 tonnes of sugar per acre. That would give them about $400,000 per acre. That will be enough to sustain a family for the year,” Subnauth stated.
He went on to remind that GuySuCo’s management failed in the past to fully utilise the lands.
“Mr Anand Singh in 2015, produced one-third of the sugar that Skeldon produced and he only had fifteen workers as against the estate with some 2000 odd workers. So, private cane farming is very important,” Subnauth pointed out.
“If we, as private cane farmers, can produce cane and make a profit, why is it that GuySuCo can’t do it when they have all the things in their favour?” he argued.
Subnauth further suggested that the stores at the estate be opened to the public. This way, he noted, private cane farmers and even rice farmers could make purchases.
“Similarly, we should do that with the field workshop. The field workshop must be self-sustainable. It is possible. They can take in jobs from outside including the private cane farmers,” Subnauth suggested.
Meanwhile, another farmer, George Biaghnauth, explained that many of the farmers do not have enough collateral or guarantors to secure the required loans from the bank. He said GuySuCo needs to play a role and act as a guarantor for farmers to access loans.
He said that GuySuCo had promised that it would produce a ton of sugar from ten tons of their cane but instead they have had to supply as much as 40 tons of cane for the corporation to produce one ton of sugar.
“Farmers subsidised GuySuCo for a number of years and that is why farmers today are strapped for funds. We have no funds to go back into cane farming. We cannot afford for the company to leave us stranded again. We have had our hands burnt. We need GuySuCo to guarantee our loans,” Biaghnauth asserted.
His brother, Lloyd, who also is a cane farmer, enquired about the money which private cane farmers owe to GuySuCo.
The farmers had earlier sent a letter to the Minister asking for the Cane Farmers Act to be reviewed. This, Mustapha said, will be discussed with Cabinet.
However, the Minister noted that even without revising the Act, systems can be put in place so that both parties can benefit.
One such recommendation is to allow the farmers to have a representative present when their canes are being weighed and tested. Mustapha further explained that corporate tax will be retroactively removed from all loans the farmers have with financial institutions. Hence, farmers will only have to pay the principal and interest.
“The interest we can talk about,” the Minister indicated. “We can give help to go back to the land but the Government can’t dish out cash and give to every farmer. We have to do things that will benefit all the farmers,” he added.
The Minister further committed GuySuCo to provide the needed drainage and irrigation for the farmers.
“This will benefit all the farmers. Later on, we can have another discussion to look at things like tillage and so forth. We can also look to see what other incentives we can extend to the farmers. We have already removed the VAT which was on agriculture equipment and supplies,” he outlined.

GuySuCo management
Meanwhile, the Agriculture Minister agreed with the farmers that GuySuCo’s management has failed. He said currently, his Ministry is trying to revamp the entire management structure at GuySuCo.
“We know for a fact that management has neglected GuySuCo. We have had so much corruption and so much wastage in GuySuCo which has also contributed to the downfall of GuySuCo,” Mustapha said.
Meanwhile, the Minister also met with cane farmers at Bloomfield and Letter Kenny, who produce cane for the Albion Estate.
Both of those co-ops do not have active leases to cultivate cane. Each of the co-ops had a lease for 450 acres but they have both expired.
Mustapha asked that they discuss the issue with Guyana Lands and Surveys Commission before any further steps are taken on his end.
The Minister also had a private meeting with GuySuCo managers, who pointed out that there were a number of issues affecting sugar estates. (Andrew Carmichael)