Sugar Industry Bounces Back

One of the measures taken by the Kufuor Administration to revamp the ailing sugar industry is to register Ghana to become a member of the International Sugar Organization (ISO) in the latter part of last year.

Ghana is now the 84th member of ISO and her presence in the organization has further strengthened the African nations in the agreement.

ISO is a unique intergovernmental body devoted to improving conditions on the world's sugar market through debate, analysis, special studies, transparent statistics, seminars, conferences and workshops.

ISO is based in London, and its 84 member-states represent 82 percent of world sugar production, 66 percent of world sugar consumption, 93 percent of world exports, and 38 percent of world imports.

The benefit that the country would derive from the organization is that ISO will provide Ghana with market information and market analysis coming from recognized leading analysts with an independent view point, and with the objective of increasing market transparency.

In addition, Ghana’s membership in the ISO will also increase its weight and influence in the international sugar context. Although ISO is an intergovernmental organization and therefore the government becomes a member, member-states are encouraged, where appropriate, to include in their delegations representatives and advisers from the private sector.

Sugar cane has been under cultivation in Ghana as early as 1940 for chewing and production of crude sugar.

Agricultural research into sugarcane began in early 1963 and the results of the research confirmed that the country is suitable for the production of sugar cane both geographically and climatically and has the potential to be self-sufficient in the supply of sugar.

Consequently in the same year (1963), the government took bold steps to install mills for processing sugar cane. By 1967, two sugar factories had been established in the country at Asutuare in the Eastern Region and Komenda in the Central Region.

The Asutuare factory was put into operation in 1966 with a capacity of 30,000 tonnes of sugar yearly.

The sugar plant at Komenda, on the other hand, started operations in 1967 with a capacity of 15,000 tonnes of sugar annually. The two factories have ceased production and Ghana continues to import sugar to satisfy all requirements which currently stands at about 200,000 tonnes of sugar valued at about $100 million.

Market watchers say importation of sugar is likely to rise in future if nothing is done to revamp the country’s sugar industry.

The market watchers believe that Ghana now being a member of the International Sugar Organization is a step in the right direction to give a face-lift to the sugar industry.