Sugar industry remains important to the economy and should continue to be supported
in the state sectors? Moreover, isn’t it discriminatory for sugar workers to be the only group of state employees to not benefit from any improvements especially in view of the rising cost-of-living?
It may also be interesting for the author to know that many sugar industries in the world to our knowledge, in one way or another, receive some form of state-support in these times.
Such support takes account of the very important economic and social contributions the industry makes to the country. Furthermore, Mr Seetaram may also find it of interest to learn that the Caribbean Development Bank (CDB) in assessing a request for financial assistance to aid the industry’s mechanization, said:- “…it is economically viable for GOGY to continue subsidising and protecting the cultivation and harvesting of sugar cane and processing of sugar for export and local consumption.”
The CDB further said:- “Projects and programmes that enhance sugar cane cultivation and sugar manufacturing have the potential to earn foreign exchange, but may not be always financially profitable. Consequently, given the importance of foreign exchange to the economy, such operations may, at times, need government’s protection and/or support in meeting operating and capital costs”.
Apart from the almost 17,000 direct employees, the sugar company also facilitates close to 2,000 small to large cane farmers. It is estimated that tens of thousands of other Guyanese are indirectly employed due to the sugar industry.
Additionally, one cannot ignore the services the industry provides to various communities and employees of the sugar estates.
Given the direct and indirect employment of the sugar industry, the economic importance of GuySuCo cannot be understated. Following the rebasing of the GDP in 2006, the industry’s yearly contribution is about 5 per cent of national GDP and about 19 per cent of agricultural GDP. Importantly, too, it is still among the largest sources of foreign exchange, and it’s probably the largest net foreign exchange earner.
Should the industry be minimized or be gotten rid of altogether, as is being promoted in some quarters, there will be severe repercussions for all Guyanese.
For instance, in the areas of its operation, it is the single most important economic activity and source of employment. The industry also supports the rice, cash-crop farming and other agriculture sub-sectors in several areas, and helps to manage the anti-flood control systems with its vast network of drainage and irrigation.
If the multiplier effect is considered, the economic impact is extended directly and indirectly to commercial banks, insurers, suppliers and service providers.
Clearly, the letter appearing in Abel Seetaram’s name consists of rather selective information and, unfortunately, excludes important data that could have provided a far better understanding of the industry at this time.
Yours faithfully, Seepaul Narine General Secretary Guyana Agricultural and General Workers Union