Another failed year for the sugar industry

[posted 30 Dec 2011, 1430]

The 2011 season ended last week with a total crush of 2.1 million tonnes of cane at the four mills, producing approximately 165,000 tonnes of sugar.

It will be recalled that the PS for Sugar, Manasa Vaniqi had announced at the beginning of the season that FSC hopes to crush 2.2 million tonnes of cane and produce 220,000 tonnes of sugar at a TCTS ratio of 10:1.

But the actual results tell a different story. Crop crushed is 100,000 tonnes less and sugar make is a substantial 55,000 tonnes less. Why? Because TCTS ratio of 10:1 was a pipe dream – the actual TCTS for the season was 13:1 same as last year.

55,000 tonnes less sugar means an income loss of at least $60 million to the industry. Farmers lose $42 million or $19 per tonne of cane. FSC’s loss comes to $18m.

The industry has been going down rapidly since the 2009 season. How long can it survive under such circumstances?

S.Lal