Sugar Exports Down

[posted 17 Nov 2009, 1600]

In its four shipments so far, FSC has been able to export only 107,000 tonnes of sugar. This is well below the average for previous years.

With only five weeks to go before the season ends, it is estimated that exports for the season are likely to be below 200,000 tonnes or some 40-50,000 tonnes short of the 240,000 tonnes budgeted by FSC.

The abysmally low export figure is attributable to the extremely poor performance of the mills which have been plagued by chronic mechanical problems. This resulted in frequent breakdowns which have, in turn, resulted in grossly poor sugar extraction rate.

FSC insiders have revealed that by the season’s end, some 25,000 tonnes of sugar will have been lost to molasses, and bagasse and mill mud which are highly saturated with cane juice.

The loss to the industry as a whole in monetary terms will be a staggering $30 million of which $21 million will have to be borne by the farmers. Broken down further, it means a loss of approximately $11 per tonne of cane.

It will be recalled that FSC had announced an estimated price of $71 per tonne for this season’s cane. But it is more than evident now that the actual price may be below $60 per tonne as a result of milling inefficiencies. The average TCTS for the season is running at 13:1 i.e. 13 tonnes of cane to a tonne of sugar which is 45% above the accepted norm of 9:1.

Things don’t look good at all for the future of the industry under FSC's present managerial style. With the dismantling of all industry institutions where the cane growers had a voice, coupled with the harassment by some elements of the military and non-resolution of the land lease problems, farmers are finding it hard to remain interested in cane farming.

The heavy losses they have sustained this season as a result of milling inefficiencies, and the autocratic handling of sensitive industry matters by the Sugar Ministry and FSC are compelling them to look to other crops.