ronan posted:Baseman posted:ronan posted:Baseman posted:Reeper posted:
Seems like the GOG needs to examine this approach of subsidies. Too bad they didn't see fit to help save the sugar industry. Maybe it is not too late?
I’ve always supported subsidizing sugar in exchange for forex. However, I am not privy to the entire business case.
economic nonsense . . . pure politicking on your part
you bloody well know that is unsustainable and only delays hard reforms that can actually save the industry
Nope, every dollar of USD earned equated to over $10 USD equivalent in Local Currency input costs. I support the sugar subsidy unless you can prove the input costs saps Forex!
so, where did you get your numbers from?
my reading of the literature informs that, outside the ACP/US preference arrangements, Guyana produced & sold sugar at a net foreign currency loss
i am also quite sure that you are quite aware that the $GY is not a reserve currency
Where did you get that from? The Sugar industry in Guyana remains a highly manual industry with very limited mechanization. Additionally, the power is produced by burning the crushed cane. Where does this foreign currency input costs come from?
I made the 10x assumption given the fact that normal economic activity tend to have a 3/4 multiplier effect through the economy. Forex finance the importation of production materiel for further added value easily 2 or 3 Times. As long as significant Forex is earner over local costs, it's a great value proposition!
I believe closing the estates were out of spite and not well founded!