Sugar in the budget

One of the line items in the 2026 Budget that is sure to create sparks during the debate, which kicks off on Monday, will be the Government’s injection of $13.5 billion to fund its plans for sugar production that entail modernisation, mechanisation, and value-added processing. It will be pointed out by the Opposition that with a similar amount allocated last year – bringing the total injected since 2020 to $45B – even reduced targets were not met. But this in itself is a contradictory charge since the alternative would be tantamount to abandoning the industry and throwing over eight thousand workers into the breadlines. This would be quite anomalous in a budget that is themed “Putting People First”.
The Government is very clear that it does not consider its efforts to revitalise the Guyana Sugar Corporation (GuySuCo) for long-term financial sustainability as “pouring money into a black hole”, as the Opposition charges. It is apposite to note that the genesis of the sugar industry’s downward slide had its origins in the scooping off of all profits after 1974 and not making the necessary investments, especially in the factories. Inevitably, there was degradation in the field, factory and personnel. In those years the profits were used to subsidise the rest of the economy, and as such the present injections have to be seen as also repaying a past debt. Much of the injected funds will be directed towards continued rehabilitation of factory infrastructure combined with ICT transition to improve productivity.
It is true that the efforts to achieve this goal have not been totally successful to date, but the Administration has made it clear that going forward, if the new targets are not met, there will be changes in management. The budget lays the groundwork for GuySuCo’s five-year strategic goal to modernise factories, deepen mechanisation, and introduce high-yielding, high-value cane varieties that can support speciality and value-added products. Specifically, in addition to efforts to increase the productivity of sugar cane in the cane-per-acre harvesting through the introduction of new, higher-yielding varieties, funds are earmarked to convert over 3000 hectares of land to fully mechanised harvesting to boost productivity. Even in the older fields, realignment of drains, etc., has been ongoing to facilitate increased mechanisation of cane harvesting and loading. Bell loaders are now a feature in all locations. There will be the procurement of new equipment, including five cane harvesters, that will be added to the present stock to strengthen field operations.
The more efficient processing in the rehabilitated factories should result in more cane per tonne of sugar to approach the historical 10 tonnes of cane per tonne of sugar achievement. Right now it is much lower, leading to production costs much higher than the world market price. Much of the factory equipment are several decades past their prime and are incapable of functioning efficiently. The budget includes replacing three sugar boilers and installing additional dryers at key estates – namely Rose Hall and Uitvlugt. Over at Albion, a conveyor system will be built to improve cane handling prior to cutting prior to crushing, and billet cane feeder tables will be added.
The 2026 budget will also strengthen efforts to move from shipping traditional low-priced bulk sugar and expand value-added sugar products by focusing more on producing packaged and branded sugar products for higher-value export markets. This aligns with ongoing diversification strategies for GuySuCo in which the corporation will partner with private entities, including workers, to cultivate both sugar cane and also new products such as coconuts and also raise freshwater fish.
Investments will also include improvements to all-weather road access between the far-flung fields and factories to improve cane transportation and reduce delays in processing, which causes lower concentrations of sucrose in the sugarcane. Overall, the administration is to be commended for its efforts to save a traditional industry and also the workers who have contributed so much to this country. The Opposition cannot have it both ways – criticise the Government for not focusing on people while simultaneously advocating firing thousands of sugar workers.