Sugar has a bright future - Agriculture Minister assures private cane farmers of continued support

Georgetown, GINA, April 22, 2008.

The sugar industry has potential for continued viability and increased competitiveness and while Government continues to invest in this regard, private cane farmers are being urged to play their role in helping the process. 
            At a meeting with private cane farmers of Region Three last evening, Minister of Agriculture Robert Persaud assured that Government will continue to support them once there is a demonstration of willingness and interest in continuing cane farming activities.
The meeting held at the Belle Vue Community Centre, West Bank Demerara was attended by Region Three Chairman Julius Faerber, Chief Executive Officer of the National Drainage and Irrigation Authority (NDIA) Lionel Wordsworthand General Manager of the West Demerara Estates Aaron Dukhia.
            It was noted that production by private cane farmers of West Demerara have decreased over the years for various reasons and while efforts are continuing to improve drainage and irrigation and provide other support services, there is need for farmers to display greater interest.
            The Minister rebutted suggestions that cane farming is no longer profitable because of the world situation regarding sugar and changes in the marketing arrangement with Europe.
            “There is much sense in cane farming…The Government itself is sinking close to US$200M in the sugar industry. So why would we put so much money in the sugar industry if we think it would not work?” the Minister asked.

Minister of Agriculture Robert Persaud addresses private cane farmers of West Demerara at the Belle Vue Community Centre in Region Three on April 21, 2008

He pointed out that the activities such as the ongoing modernisation at Skeldon and establishment of a packaging facility at Enmore are part of the strategic plan being pursued by Government to ensure that the industry develops.
The Minister acknowledged that there will be challenges including the price-cuts and other issues, but there is no doubt that the investment returns will be positive and the industry’s future will be bright. It was noted that Guyana and Belize are the only two countries in the Caribbean pursuing development of the sugar industry, since many of the other states have closed their operations.
Reference was made to long-term plans such as diversification within the industry, advanced value-added and increased production and establishment of a refinery to support the industry’s sustainability.
Minister Persaud refuted claims that Government intends to close down several of the West Demerara estates and highlighted some of the ongoing activities to enhance cane production in the district through mainly D&I improvement.

A section of the gathering at the meeting with Minister of Agriculture Robert Persaud and private cane farmers of West Demerara at the Belle Vue Community Centre in Region Three on April 21, 2008

A programme is currently underway to undertake cleaning and sectional excavation of cross canals and clear the Belle Vue south and north main irrigation canals. These works are estimated to cost $3.6M and are being carried out in two phases.
Overall, this project and other D&I enhancement to be done in Region Three during this year, that will support all farming activities including sugar cane cultivation at a cost of about $261M.
During the interactive session, farmers commended Government’s ongoing investments and plans to resuscitate the sugar industry despite its many challenges and indicated their willingness to support the effort by increasing investments in cane farming.
Requests were made for duty-free fuel and fertilisers and further assistance with drainage and irrigation and machinery to carry out the cultivation activities and farmers were advised of the reduction and removal of the Excise Tax on fuel and exemption of Value Added Tax (VAT) from fertilisers.
In addition, they were told of ongoing efforts to source supplies of fertilizers through an arrangement that aims to make the item available to farmer at affordable prices. The requests for D&I and machinery support will be considered by NDIA and the Guyana Sugar Corporation (GuySuCo) to determine what form of assistance could be provided.
The need for resuscitation of the National Cane Farmers Committee was another issue raised and Minister Persaud explained that this is being done as members have been identified and are to be announced shortly.         

 

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