Govt to discontinue GuySuCo Subsidy

Parvatan lamented the condition of the industry, particularly the financial pressure it imposes on the economy, with the multibillion-dollar subsidies it receives from Government. Both the past and current Governments have pumped billions of dollars into the operations of the Corporation, and Parvatan posited that this did not speak well for Guyana’s weakening financial system.

He said the historical position of the European Market, which gave the preferential prices and which was a bonanza in times past, was now going downhill. According to him, every estate from Skeldon to Uitvlugt was operating at a loss.

Sources at GuySuCo have informed him that as things stand now, the world market price is some 13 US cents per pound and, in the same vein, the Sugar Corporation has advised that its current cost of production is around 45 cents per pound.

I guess that the above para says it all. Guyana cannot continue producing sugar at 45 cents per pound, whils't the market price is 13 cents per pound.

The people making the decision on Guysuco are incapable of understanding the consequences. It is like scrapping the Railway-that was loosing money as well. Corruption is a major roadblock for profitability.

Guyana seems to be heading over the precipice.

The Burnham government left the country in a bankrupted state. I guess the PPP was unable to fix their problems in the 23 years of trying.  The debt was too high to pay. Now that the PNC is back, let them fix the problems and stop complaining like little girls.

Granger made one grave mistake.  He put two water washed coolies to run the government.

Rememba where the 'two wata washed coolies' come from and who trained dem. 

Now de PPP getting de runnings, when de 'wata wash coolies' using the same training, to keep de PPP straight.

But could a crooked snake eva walk straight ? 

Hey drunky, why throw good money after bad?

Why should Guyana  continue producing sugar at 45 cents per pound, whils't the market price is 13 cents per pound?

That is a very hard question for that chap,ah wonder if he

ran any business.

Guys like Rama and Yuji comes here and show their arrogance, ignorance,stupidity and typically what most in the PPP are like.

They seem to lack protocol, courtesy and follow exactly the arrogant behaviour of Jagdeo/Rohee, including others in the PPP.

This is a real bad example that is influencing the youth of Guyana. Rass it might take generations to straighten their heads.  

ah know you will say that,the PPP knew the two industry

were failing so they fix it by propping it,so they can get

their votes,now reality kicks in and the current gov't is

blamed.

The reality is they were being subsidized for over a decade now. That is how long this industry has been under performing and needing supplemental funds.

The government maintain that sugar is here to stay. It may not be in the form it is in but the commitment to the 11 to 15 thousand families who directly depend on it is to ensure they fit in and can make a livable wage in the new organization.

The Present subsidy and building castles in the sky in hope the industry magically return to robust profitability is wishful thinking. The new plan may even involve decommissioning the crippled Skeldon plant. It does not produce sugar at viable market prices. It is a dud.

The Sugar workers are understanding exactly what bauxite workers know. When an industry collapse, changes are inevitable. The sugar workers toiling in the fields at a futile task will have to accept, the rest of the nation cannot continue to carry them and the dead weight sugar industry on their backs. It has been a leech on them for over a decade now.

How it will change, I do not know. It is grangers burden.

Well, CBJ got his wishes. Close down the estates, dey paying slave labour wages, that was his cry. In the PPP 23 years, dey paid sugar workers high wages and Ramotar also got a good piece from it.

Leh meh see if dem goan fallow Jagdeo like sheep.

In its 23 years of power the PPP did NOTHING to move Guyana from being a high cost producer of commodity products aimed at protected markets.  They then pretended that the post 2008 boom was not due to the lucky fact that gold prices soared.

Well with gold prices down, and the sugar and rice industries being too inefficient to compete in global markets, the chickens have come home to roost.

Of course the Indo KKK will scream that this only happened after May 11, 2015.

LAST YEAR I warned that this would happen, as did TK and many others.

The problem is that Guyana's economy remained untransformed, so why does the PPP claim that it had excellent economic policy.

There were heavy remittances, debt forgiveness, and high commodity prices until recently.

Can any one explain where in all of this is there any sign of PPP excellence in managing the economy?

The PPP didn't subsidize PNC supporters, so what makes PPP supporters so special.