PROFIT IN SUGAR!

FOR the first time in 29 years, during which this country’s sugar production was carried out by the now defunct Caroni (1975) Ltd, the recently formed Sugar Manufacturing Company Ltd (SMCL) is expecting a profit to be made from a sugar crop. Newsday was informed yesterday that the company’s accounts, final tabulation of which is currently underway, indicated the years of “being in the red” were actually reversed.

This year was the very first sugar production crop for SMCL, after government closed down Caroni (1975) ltd in June 2003 under a restructured plan. The downsizing saw retrenchment of 9,000 sugar workers and the closure of the company’s Brechin Castle refinery. Caroni (1975) Ltd had received yearly subventions from the Treasury to the tune of $30 million, a source stated. The SMCL was set up with new management to oversee sugar production at a reduced tonnage of 60,000. However, chief executive officer Andre Gayadeen told Newsday the company had produced $42,000 metric tonnes of sugar.

Despite the shortfall of 18,000 tonnes, Gayadeen said the SMCL was poised to realise a profit. The CEO said SMCL was currently reviewing its accounts to determine the exact profit figures. Gayadeen said the company fulfilled its European quota as well as the local demand. SMCL also imported several thousand tonnes of raw sugar from Guyana for refining. The SMCL chairman was reportedly in a meeting yesterday and could not be reached for comment, but another top management official stated the profit margin, though small, was due to reduced costs, achieved with the shutdown of one of the two refineries. According to the official, another cost factor the SMCL did not have to bear was the wages for 9,000 sugar workers. Efforts to reach heads of the various sugar unions for comment yesterday, proved futile.