GuySuCo’s 2026 production target has been cut from 100,000 tonnes to 70,401 tonnes while government support to the cash-strapped corporation has been increased from $13.4 billion to $16.4 billion, the Mid-Year Report shows.
The new production target represents a reduction of 29,599 tonnes, or 29.6%, from the target announced by Agriculture Minister Zulfikar Mustapha during the consideration of the 2026 budget.
It is, however, 12,264 tonnes higher than the revised target of 58,137 tonnes reported by Kiskadee Watch in August, based on figures supplied by WIN parliamentarian and former GuySuCo executive Vishnu Panday.
GuySuCo produced 19,031 tonnes during the first crop, meaning the corporation would have to produce another 51,370 tonnes during the second crop to meet the latest official target.
The original first-crop target was 29,376 tonnes. Production therefore fell short by 10,345 tonnes, or 35.2%.
The Ministry of Finance attributed the poor showing to heavy rainfall, labour shortages and poor cane quality. Despite the shortfall, the report estimates that sugar growing expanded by 19.3% compared with the corresponding period last year, when output was even lower.
The growth figure therefore represents an improvement from a depressed 2025 first-crop base and does not indicate that the corporation met its 2026 target.
The report says $8.9 billion of the $13.4 billion initially budgeted for GuySuCo’s operations and resuscitation had already been spent during the first half of the year.
An appendix shows that current transfers to the corporation have now been increased from $8.4 billion to $11.4 billion. The $5 billion capital allocation remains unchanged, taking total planned support for the year to $16.4 billion.
This is an increase of $3 billion, or 22.4%, over the original allocation.
The Mid-Year Report says the government converted 696 hectares of estate lands for mechanical harvesting during the first half and plans to convert another 2,543 hectares before year-end.
Procurement was advanced for mechanical harvesters, four cane-haulage trailers, two trucks, drainage tubes and equipment for the factories.
Upgrades to stainless-steel processing equipment at Albion and Blairmont were continuing, while additional dryers were being procured for Rose Hall and Uitvlugt.
GuySuCo also produced 2,630 tonnes of packaged Demerara Gold sugar and one tonne of Demerara Gold sugar sticks during the review period.
At the beginning of the year, Mustapha said GuySuCo was better positioned to achieve the 100,000-tonne target because of mechanisation, factory rehabilitation and an estimated 1.2 million tonnes of cane in the fields.
President Irfaan Ali had also warned that changes would be made at estates which failed to achieve their assigned first-crop targets. No such management changes have been publicly announced.
The higher subvention and substantially reduced production target will again raise questions about what measurable returns have been obtained from the billions of dollars transferred to the corporation and when GuySuCo is expected to reduce its dependence on the Treasury.
Discussion