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Apr 14, 2012 Letters
DEAR EDITOR,
The government has recently presented its 2012 budget to the National Assembly, and as is customary, the analysis and debates on the said budget would have started nationwide. The Finance Minister in reviewing the performance of the agricultural sector for the year 2011 noted the significant growth in rice production, while also noting the stagnant nature of sugar production.
The sugar and rice industries represent the largest portion of agricultural contribution to the economy. However, while both industries are located on the Coastal Plain and thus face the same constraints of climate change and depend on basically the same skills, the rice industry for some years now has been performing much better with regards to growth in production.
I believe that the reason for this is because the rice industry operates in a decentralized manner, which inevitably promotes competition and growth, while the sugar industry is still very centralized (Colonial-Plantation/Estate).
It is time that the sugar industry adopts a similar model to the rice industry and starts to decentralize its operations, if it is to increase its production and return to profitability.
Mechanization, automation and diffusion (instead of milling) are seen as the solution to the decline in labour, and for the reduction in tonnes canes used per ton sugar output (tc/ts). Mechanization of harvesting operations also has the added advantage of increasing available hours (which is always challenged due to high levels of rainfall) since it allows for the harvesting of canes during the night. While I do agree in principle to mechanization, automation and diffusion, I do not believe that it will turn the industry around if implemented in a centralized system.
Estates should not be solely responsible for land preparation, planting, cane harvesting and cane transport from field to factory. The estates should lease traditional lands to private individuals who would then be responsible for its cultivation and harvesting operations etc. These private individuals can then sub-contract the various operations mentioned above as deemed necessary by them.
To make the proposed idea (decentralized system) work, three important things would be necessary. These are quality control, capital and the freedom of the private individuals to select which factory he/she would like to crush his/her canes.
With regards to quality control, estates can institute penalties for trash and mud content, and for canes arriving at the factory 48 hours after harvesting (known as the kill to mill period) etc., which are all critical to overall sucrose recovery. Secondly, the private individual can select the factory he/she is comfortable will show the best tc/ts. This will directly induce competition amongst factories, which will lead to each factory constantly trying to improve their operations and thus their ability to recover sucrose in canes.
This, however, does not mean that there will be factories without canes to crush, since the amount of canes and time constraint with regards to the harvesting season will guarantee them grinding hours. Each factory will realize that it cannot be complacent with breakdown or recoveries since the private individuals can easily divert their canes to another factory that can accommodate their canes (most applicable in East Berbice and West Demerara where the factories are closely grouped).
Finally, capital would be needed as the transition is made to mechanization of field operations and the automation of factories, as well as the installation of punt dumpers to facilitate machine harvested canes. The banks will have a big role to play, as well as the generosity of the government, which recently pledged $4B in the 2012 budget towards the industry.
Sugar has a future, simply because there are available market opportunities. It is the time therefore that the industry indeed turns around and takes advantage of the international demand for sugar. But it will not be possible if its operations continue to be centralized.
Subrina Mohamed
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