At the opening of the Skeldon Sugar Factory, President Jagdeo said that in considering the options, the Government realized that sugar was too big to fail. The number of families relying on the industry was too large, its contribution to the economy too great. The President said that the option of privatization was ruled out and the only alternative was investment by the State. He pointed out that in the era of neo-liberalism it was tremendously difficult to convince the World Bank to support such a project. Finally, however, the Government prevailed and, the President argued, its wisdom of protecting large industries has been vindicated by the recent policies of industralized countries in protecting industries ‘too big to fail.’ Above all, sugar could be profitable. The Skeldon Factory was designed to produce sugar at US12 cents a pound. The world price was at one time US22 cents a pound. But the bulk of Guyana’s sugar sold outside of its traditional markets will be sold in added value form at far higher prices than the world market. This price has been dramatically reduced.
Sugar generally, and the Skeldon Sugar Factory in particular, face enormous challenges. The President mentioned several of them. These include the restoration of management capacity and efficiency, the deployment of innovative initiatives to increase the supply of cane, industrial stability, the development of new products with added value, establishment of downstream industries and more. Sugar, he said, must pay its way and contribute to the national treasury. The opening of the Skeldon Sugar Factory gave hope that despite the daunting challenges, sugar is on its way to even greater heights.
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