Sugar industry can be fixed – Private Sector… says problems lie in structure

Private Sector Commission (PSC) Chairman Ronald Webster believes that the failure of the sugar industry against the present backdrop of falling commodity prices for gold and other products can have serious detrimental consequences on the local economy and necessitates prompt and objective remedial action.
During recent remarks on the state of the Guyana Sugar Corporation (GuySuCo), Webster said he is convinced that many of the initiatives taken over the years have been very good. However, he is of the opinion that the matters are rooted in the structure of the organisation and many of these initiatives have not been taken within the context of the structure that created the problem in the first place.
“In effect, what we end up doing, is fixing the symptoms rather than the underlying problem. The organisation cannot improve productivity by giving incentives and preaching teamwork without effective leadership, management, and rules,” Webster remarked.
Downward spiral
He pointed out that the result would eventually be a downward spiral in productivity and a drain on the economy.
According to Webster, one solution would be to privatise one or two sugar estates and employ the same practices used in the successful privatisation of the bauxite industry.
Webster stressed that failure to put in place the systems to address the ailing industry and the continued overdependence on commodity price-based exports can prove costly in the longterm.
However, President Donald Ramotar said many of the challenges confronting the industry are beyond the control of the administration, pointing to the change of sugar prices and investments which have not been as successful as expected, such as the Skeldon Modernisation Project.
Ramotar recently reiterated calls for the resuscitation of the ailing sector, stating that consideration may be given to employing co-ops as a means of altering the fortunes of the sugar industry should the idea resonate well with stakeholders.
He said the sugar industry paved the way for the country’s development, pointing out that most of the exiting industries today have benefited from the successes of the sugar industry, whether through managerial skills, finances or other categories of work.
“Many of the top organisations have their beginnings in the sugar industry,” he said, underscoring that the industry still has a significant role to play in the development of Guyana.
In June, Agriculture Minister Dr Leslie Ramsammy announced that the “the glory days” of sugar was not over and vowed that the corporation would see better days.
Dr Ramsammy said the industry had to be brought out of its deathbed in the 1980s, and government succeeded in bringing it back to life. He had expressed optimism early in the year that the sugar industry was still in a position to reach its production target of between 250,000 and 265,000 tonnes.