Similar situation with Guyana sugar industry experienced by other nations

GEORGETOWN, Guyana (GINA): Reduced demand, price cuts and climate change have taken their toll on sugar industries around the world so much so that approximately four million tonnes of sugar will be undersupplied by the world market and many countries that are large producers of sugar will be importing sugar for their own use.

Among the countries affected are the Dominican Republic, Jamaica, Barbados, Trinidad, Australia, Pakistan, India and Guyana.

Agriculture Minister Robert Persaud speaking at the launching of a project to aid rural communities recently said some of the problems faced by Guyana were shared by other nations and that the move to import was only temporary.

This statement came in light of a recent decision by the Government of Guyana to import sugar even though it was produced in the country since the Guyana Sugar Corporation (GuySuCo) was committed to supplying its existing markets.

Persaud highlighted that the entire sugar industry was devastated in Fiji since it experienced a similar rainy season.

Recently Australia, the world’s second largest sugar exporter, suffered tremendous losses as a result of flooding. Ron Mullins, Deputy Chief Executive Officer of the Industry Group Cane growers said that the impact on the 2009 sugar cane crop is unknown until a survey is carried out on the post-flooded cane fields.

The Queensland government has declared a natural disaster in 35 counties and estimates losses at A$109 million. Queensland produces 95 percent of Australia’s sugar. The government is also considering putting preparatory measures in place for the May / June rains.

Last week, Nick Jackson, GuySuCo’s Chief Executive Officer, had noted that the 2005 floods had a severe impact on the sugar industry since many fields were flooded. This in effect, has caused the corporation to register a deficit since it is still recovering from the effects of the devastating floods.

In Islamabad, the Economic Coordination Committee of the Cabinet directed the Trading Corporation of Pakistan (TCP) on Tuesday to import 200,000 tonnes of refined sugar to stabilize prices in the market.

In Jamaica, on February 2, Prime Minister Bruce Golding noted that the government’s plan to sell five state-owned sugar estates to a Brazilian sugar and ethanol producer had fizzled due to a lack of financing. The Jamaican sugar industry has suffered a JA$4 billion deficit and new options by the government were being looked at.

In New Delhi, India, two state-run firms have moved to import around 22,000 tonnes of raw sugar by next month.

According to a Reuters report of January 28, 2009, the world supply/demand deficit for sugar is expected to widen to five million tonnes in 2009/10 (mostly Oct-Sept) from 3.75 million tonnes in 2008/09.