The state-owned Guyana Sugar Corporation (GuySuCo) is producing sugar at a cost far above its selling price, opposition agriculture spokesperson Vinceroy Jordan told the National Assembly on Monday, describing the company as cash-strapped and producing at low levels, Demerara waves reported.
Jordan, the agriculture spokesperson for A Partnership for National Unity (APNU), said the state-owned company spends an average of US$1.31 to produce one pound of sugar, but sells it on the international market for about US$0.17 per pound. He said this results in a loss of US$1.14 on every pound sold.
Speaking during the debate on the GY$1.558 trillion budget, Jordan questioned how growth in the sector is being assessed, saying improvements are being measured against poor performance. He said APNU believes the challenges facing the sugar industry are not due to a lack of funding, but to the government’s failure to accept change and put a clear plan in place.
Jordan also presented the figures in Guyana dollars, telling the House that GuySuCo spends about GY$275 to produce one pound of sugar, while it earns only GY$35 from sales. He said this means the corporation loses GY$240 on every pound produced.
The 2026 National Budget reports that the average price of sugar declined by 17.1 percent to US$0.37 per kilogramme in 2025 and is expected to fall by a further 0.5 percent this year.
Despite the drop in prices, the government has allocated GY$13.4 billion for the sugar sector in 2026, in addition to the GY$13.3 billion spent in 2025 on mechanisation and other activities.
According to the budget, sugar cultivation expanded by an estimated 26.5 percent in 2025, with GuySuCo recording production of 59,600 tonnes.
Finance Minister Dr Ashni Singh said sugar output is projected to increase by 67.9 percent this year, with a target of 100,041 tonnes. He made the statement during his presentation of the 2026 budget last week.
Singh said sugar production in 2025 was affected by heavy rainfall that disrupted harvesting and field work. He added that labour shortages, low worker turnout and problems with factory machinery at several estates also contributed to lower output.
GuySuCo currently employs more than 8,000 workers.
