Django posted:

Tola posted:

“This state of affairs must be compared with Albion Estate which produces more than twice the amount of sugar

NAACIE’s General Secretary, Kenneth Joseph

as produced by the East Demerara Estates and operates efficiently with one Mill Dock, one Field Workshop, one Field Laboratory and one Mill Dock.”

Using the Albion method, maybe they can save the sugar industry.  

Looks like Albion cane have more sucrose content and an efficient sugar mill.

It was determined quite a while ago that climatic and soil conditions are more favorable for sugar in Berbice than in Demerara. 

For this reason production in the latter was going to be phased out.  Indeed the PPP began this, and now that the coalition continues this, the PPP runs around screaming "blackman a starve ahbe".

ba$eman posted:

caribny posted:

ba$eman posted:

Only the GoG has national economic and taxing jurisdiction to make this model work!

The problem is that they don't.   Guyana has a limited income tax base, and VAT is already killing the population.

Unfortunately VAT is a reality in a nation where hard currency is scarce and earned by loss-making industries which needs injections of subsidies to exist and provide further hard currency.

 

Which is why loss making state controlled entities ought to be either sold, or shut down.

You will spend your time more usefully in discussing how to manage the transition away from sugar.  This doesn't mean that sugar cane is no longer grown.

It will mean that sugar cane cultivation will no longer be based on production of a product which we sell for way less than it costs for us to produce it.

A poor nation like Guyana cannot have a high VAT structure, as this prevents the emergence of new industries, due to a high cost regimen.  Note that VAT isn't like sale tax where the burden is only borne by the consumer.

Drugb posted:

ba$eman posted:

You totally miss the macro-economic model.  What you say is true if sugar is in private hands and the owner's sole responsibility is to make a straight-out Revenue less Costs = Profit domain model.  That is not the model for that industry.

You are smart, but you miss that boat on this!

The Govt has to bail out as the sugar industry contributes to economic activity beyond its immediate domain and the national treasury is the beneficiary!  The "bail out" is the subsidy which the Sugar industry deserves for being a Forex generator!

As I said, unless you can point to the source of replacing the 300 Forex, the Sugar industry is in-play!

I don't see how spending 800 to gain 300 is a sound economic model. Wouldn't it be better to scrap the industry and spend 500 on infrastructure etc?

You are a fool and a micro-thinker.  That's why you post and other do something!!