Government is planning to sink an additional $8.2B into the troubled sugar industry this year, but cautions that hard decisions are coming as it awaits the report of an ongoing Commission of Inquiry.Time is running out on GuySuCo, with cash injections to keep it alive not being sustainable, Government warned yesterday.Already, since taking office,Cheap Basketball Jerseys, the new Government has injected some $3.8B to keep the industry alive.During his four-hour-long 2015 National Budget presentation yesterday, Finance Minister Winston Jordan made it clear that the “stop-gap measure is neither sustainable nor meant to be a substitute for, or postponing of, the hard decisions that need to be made. Whatever path the industry takes, it is vital for the sake of the national economy that it remains viable and able to compete in an increasingly competitive and volatile global market. Time is of the essence! We anxiously await the report of the Commission of Inquiry before deciding on the next steps.”Sugar has been a drag to the treasury with the present and previous Governments forced to continually dole out cash assistance despite rising costs at the factories of the Guyana Sugar Corporation (GuySuCo) and falling world prices.With projections that commodities prices likely to decline more this year, sugar’s outlook is not positive.As a matter of fact, he says, gold and sugar could pose risks to the economy’s growth forecast. “We remain sanguine, however, that with the recent downward movement in the price of oil, the likely negative effects on the economy can be attenuated.”Minister Jordan, painting a grim picture,Bill Melton White Sox Jersey, said that sugar production’s continuous sub-par performances since the mid-2000s have been well ventilated.“Between 2008 and 2013, annual sugar production,Miiko Albornoz Chile Jersey, which averaged 220,Julien Davenport Jersey,362 tonnes, was considerably below the average production level of 286,084 tonnes for the preceding period 2000-2007. Following its disastrous performance in 2013, when a lowly 186,770 tonnes were produced, a modest target of 215,910 tonnes was set for 2014.? The final outturn for 2014 was 216,186 tonnes. The implications of this industry remaining an uncompetitive producer are frightening…”With agriculture accounting for approximately 25 percent of Guyana’s Gross Domestic Product (GDP), it provides some 33 percent of direct employment, both rural and urban.He noted that the industry is grappling with an unsustainably high cost structure, with production currently averaging US$0.40 per pound of sugar, almost three times the world market price.The Commission of Inquiry tasks is to “investigate and inquire into the current state of cane cultivation, production and marketing of sugar, molasses and other by-products including power.”“The economic well-being of the sugar industry is critical to the protection of jobs and growth of the economy, as well as the contribution it makes to GDP, exports and foreign exchange. The Government is committed to supporting the reform efforts. In June, it averted a crisis by injecting $3.8 billion into the industry and plans to transfer an additional $8.2 billion for the remainder of the year.”With regards to projections, the Finance Minister said that production was recorded at 81,271 tonnes at the half year. “On the strength of this slim improvement in performance relative to the similar period last year,Jim Kelly Bills Jersey, sugar production for the entire year 2015 has been reduced from 245,079 tonnes,http://www.airmaxfantasy.us.com/Nike-Roshe-Ld-1000-Sp/, envisaged by the previous administration, to 219,913 tonnes, a marginal increase of 1.7 percent over 2014.”Last year, sugar export receipts fell by 22.9 percent to US$88M. An 18.3 percent increase in export volume, to 189,565 tonnes, was insufficient to compensate for the 34.8 percent decline in prices, to US$464.30 per tonne.Since taking office in May after winning the elections, the David Granger-led government has sacked the Board of Directors and its Chief Executive Officer (CEO), Dr. Raj Singh.Two former CEOs, Errol Hanoman and Paul Bhim were brought back to be part of an interim management team to run GuySuCo until the COI is completed.The industry’s US$200M estate at Skeldon has failed to fire, with one problem after the next. Government has been forced to plug hundreds of millions of dollars to conduct repairs.