Business
Friday, June 28, 2013GEORGETOWN, Guyana – The European Union has awarded Guyana US$30 million to help boost the Caribbean country’s struggling sugar industry.The money will be used to buy harvesting machines and lessen dependence on cane cutters, many of whom have abandoned fields to work in the country’s booming gold-mining business.The announcement comes just days after the state-owned Guyana Sugar Corporation reported its lowest-ever first crop production of 48,000 tons (43,500 metric tons), 20,000 tons (18,100 metric tons) less than projected.The company has blamed serious labour shortages, bad weather, mounting debt and management problems for the decrease in production.The deal was signed last week.Sugar generates about 20 per cent of Guyana’s gross domestic product, and the industry is the country’s largest employer. Against the background that the sugar industry continues to play a vital role in the socio-economic development of the country, Government earlier this year said it was pumping billions of dollars in reforming the industry.“The industry is still of sufficient systemic importance to the national economy and to the livelihoods of so many rural communities and has such deep forward and backward linkages with suppliers and distributors nationwide that no effort must be spared to ensure its long-term viability, competitiveness, and profitability,” said Finance Minister Dr Ashni Singh as he announced a billion-dollar (One Guyana dollar = US$0.01 cents) allocation to the Guyana Sugar Corporation (GUYSUCO) in March.
View the original article here
EU provides US$30M boost to Guyana"s sugar industry
