Turn around for sugar sector this year as govt injects $13.3B

Following a contraction in 2024, the sugar industry is poised to turnaround this year with the Guyana Sugar Corporation (GuySuCo) receiving a whopping $13.3 billion for its revitalization.

This was announced by Finance Minister Dr Ashni Singh in his 2025 Budget presentation.

“The sugar growing subsector is projected to achieve a turnaround and record a growth of 115.4 per cent in 2025. A production target of approximately 101,000 metric tonnes is set for the year, as GuySuCo continues its mechanisation and conversion efforts and promotes value-added production.”

Earlier, the minister reported that the sugar growing sector declined 21.8 per cent in 2024 with GuySuCo producing 47,103 metric tonnes in 2024. This, he noted, was a result of the impact of El Niño, compounded by labour shortages across the industry throughout last year.

In fact, the average world price of sugar declined by 13.1 per cent to US$0.45 per kilogramme in 2024. This year, sugar prices are expected to rise marginally by 2.5 per cent to an average of US$0.46 per kilogramme, reflecting supply concerns due to dry weather in Brazil and India’s decision to lift restrictions on ethanol production from sugarcane.

Last year, some $15.5 billion was expended on support to the sugar industry, including the acquisition of six new cane harvesters, conversion of 2,734 hectares of land for mechanised cultivation and harvesting, and rehabilitated critical revetment works. Additionally, at the Blairmont Estate, drying capacity was expanded and two additional packaging lines were installed.

Moreover, works also progressed on the expansion of the Albion Packaging Plant.

In 2025, an additional 3,068 hectares of land will be converted to support mechanisation. Key investments will be made to acquire additional field equipment, rehabilitate field infrastructure, and construct over 17 kilometres of all-weather roads across the industry.

“To this end, $13.3 billion is budgeted to continue to support and rehabilitate the sugar industry,” Dr Singh noted.

Since returning to office in 2020, this Government commenced an intense rebuilding effort to resuscitate and revitalise the operations of the industry and rekindle hope in the sector.