XXIV
Chronicle Pepperpot March 26, 2017
Assessing the future of the sugar industry – Government committed to ensuring that all stakeholders’ views are considered
IN Guyana, sugar is one among other factors. of the country’s priAs a result, the Camary revenue earners ribbean, which was once and, to date provides a powerhouse sugar proover 17,000 persons with duction region, experiemployment. But the enced sizeable regression. sugar industry has enThis regression can be countered its fair share seen in the response taken of financial and other by some Caribbean counsetbacks, requiring over tries such as St. Kitts and $38 billion in annual Nevis, which closed its bailouts since 2012, di300-year sugar industry verting tax revenues in 2005 and Trinidad and away from critical soTobago, which began a cial and infrastructural major restructuring prodevelopment projects, gramme for its sugar ineven as the demand for dustry in 2003. sugar on the global marIn 2013, the Caribbeket continues to diminan suffered another blow Stakeholders during one of the consultations held with members of the Opposition, GuySuCo, GAWU, NAACIE and other bodies with the announcement ish. But this Administraby the European Union cultivation and manufacture in the West Indies and tropition has pledged to ensure that effective actions are taken (EU) - the largest importer of sugar - that it would abolish its cal parts of the Americas in the 16th century, followed by to address the difficulties of the ailing industry and bring quota regime at the end of September 2017. The EU’s quota greater improvements in production in the 17th through 19th about the best solution for all stakeholders and the country regime is a structure, which allows countries of the African, centuries. But despite its prolific lifetime, the global sugar as a whole. Caribbean, and Pacific Group of States (ACP), of which industry has, over the past years, fallen victim to several Sugar production holds a long, productive history and Guyana is a member, to sell sugar at two to three times obstructions, including the introduction of alternative sweethas enjoyed much popularity beginning from its spread of the world market price. Without these preferences, sugar eners, which led to a decline in demand for the commodity, export revenues would decline significantly. This leaves sugar producing countries in the Caribbean in a further weakened position, as they would need to become more competitive by reducing costs, adding value to their sugar industries or diversifying into other crops. Following this announcement, the ACP, in a statement in April 2015, expressed its concerns for the impending quota abolition, which it believed was responsible for a sharp decline in global sugar prices. While urging that the EU extend the quota regime to the year 2020, the ACP said that it has warned the EU that the abolition of EU sugar production quotas in 2017 will lead to drastic price reductions and major market instability, which will seriously undermine the substantial investments in the reform and adaptation processes of their sugar industries. “The ACP sugar suppliers strongly believe that they would continue to need