The claim that 200,000 people depend on the sugar industry is “doubtful”, states the Fiscal Review Committee.
The committee states present government support towards the sugar industry appears to be directed at boosting cane production but there appears to be no strategy on how to make that production profitable.
The Ministry of Sugar had informed the committee that 200,000 people depended on the industry.
“It is generally claimed that 200,000 people depend on the sugar industry; but in an industry now only contributing 1 per cent to GDP, the committee considers that number to be doubtful, given the changing dynamics of farming families.
“The ministry indicated that its diversification plans included co-generation projects and evaluation of refined sugar and ethanol; however, these ideas have not been substantially advanced.
“The committee cannot see that there has been any significant improvement in the industry over the last decade, despite the hundreds of millions of dollars allocated to it, or any concerted attempt, despite decades of warning, to restructure it. Current government support appears to be directed at boosting cane production but there appears to be no strategy on how to make that production profitable.
“The Government needs to confront the issues the industry faces and set a strategy for it.
“In the committee’s view, this is likely to be, at best, a significantly downsized and more focused industry with fewer farmers involved in it (and with others diversified into other products).
“It is difficult to justify significant amounts spent on supporting the industry without a clear vision of how this support will add economic or social value, at a time of so many competing demands on the government’s funds.”
