Guyana’s Minister of Agriculture, Zulfikar Mustapha, on Monday said the Guyana Sugar Corporation (GuySuCo) is expected to return to profitability by 2030, as he defended government spending on the sugar industry during a review of this year’s national budget, a news source reported.
The assurance came as Opposition Members of Parliament questioned the management and financial sustainability of GuySuCo while the Parliamentary Committee of Supply examined the $13.4 billion allocated to the corporation.
Of the total allocation, $8.4 billion has been earmarked for recurrent expenditure, including agricultural development and support services, while the remaining $5 billion will be used for capital projects.
Responding to questions from APNU MP Vinceroy Jordan, Minister Mustapha said that about 81 per cent of the $8.4 billion recurrent allocation would go toward wages and salaries. He noted that GuySuCo’s annual wage bill is approximately $20 billion, meaning the remaining amount must be covered through sugar sales.
Following the disclosure, APNU MP Saiku Andrews questioned whether the government intends to continue subsidising the sugar industry indefinitely. He asked whether a timeline had been set for GuySuCo to operate without annual government support.
In response, Minister Mustapha said the corporation’s five-year strategic plan is designed to restore profitability, expressing hope that improvements could begin this year. However, Andrews pressed for greater certainty, arguing that public spending decisions require confidence and clear outcomes rather than optimism.
The Agriculture Minister said he remains confident, pointing to progress in mechanisation. He told the Committee that more than 41 per cent of GuySuCo’s cultivation is already mechanised, with plans to acquire additional machinery over the next five years. The goal, he said, is to move toward full mechanical harvesting. He also noted that estate managers are being closely monitored through regular meetings to ensure production targets are met.
WIN MP Vishnu Panday, a former GuySuCo executive, raised concerns about the corporation’s production targets, noting that GuySuCo has consistently missed its goals in recent years. He said the corporation was asked to produce about 100,000 tonnes of sugar in both 2024 and 2025 but managed only around half that amount, adding that the same target has been set for 2026.
Panday argued that meeting the 2026 target would require factories to operate for about 445 hours per week, compared with the current average of around 300 hours. He questioned whether such an increase was realistic based on past performance.
Minister Mustapha maintained that increased mechanisation and factory upgrades would allow GuySuCo to meet its 2026 production target.
The Committee also learned that five per cent of the $8.4 billion recurrent budget would be used to pay lorry contractors, while other contractors would be paid from sugar sales. Minister Mustapha said GuySuCo currently owes field contractors about $100 million, adding that the corporation was unable to clear all payments by the end of December 2025.
In addition, GuySuCo reportedly has about $2 billion in outstanding National Insurance Scheme (NIS) contributions covering a two-year period. MP Jordan raised concerns that retirees and workers on sick leave have been unable to access benefits because of the unpaid contributions.
Minister Mustapha said the current budget does not include funds to settle the NIS arrears, explaining that the payments are expected to be made by mid-year using revenue from sugar sales. He assured the Committee that workers would not be affected by the delayed contributions.
