The local sugar industry is facing an even bleaker future with prices sliding to their lowest levels sinceGuySuCo CEO,Dr. Raj SinghFebruary 2009.The dismally low prices come at a time when the country failed over the last three years to lock in a multi-year agreement with its biggest customer in Europe – Tate & Lyle – leaving the country at the mercy of the international markets.This week, the price for a pound of sugar on the world market went down to US$0.12.This simply means that should the prices on the world market remain on course – and there are not any immediate indications of significant movements upwards in the immediate future – Guyana would be selling sugar in the vicinity of a highly uncompetitive US$265 per ton.At the most, according to industry experts, the Guyana Sugar Corporation (GuySuCo) would only be able to rake in around US$325 per ton for its premium Demerara Gold from the Enmore Packaging Plant.This is extremely significant if taken into account that GuySuCo’s top officials told Parliament last year that the entity is producing sugar for more than US$0.35 per pound.In effect this means that GuySuCo is producing sugar at almost US$800 per ton, selling back at a highly unprofitable US$300 per ton.For the layman, this means that GuySuCo’s losses from its sale of sugar are estimated at a shocking 60 percent for every pound of sugar produced. The prices on the world market have been compounding the situation on the ground for GuySuCo.GPL Chairman/NICIL head,Cheap Jerseys China, Winston BrassingtonIts much-touted US$200M Skeldon modernization project has failed to live up to expectations, requiring more than double the amount of cane that other older factories require to produce sugar.GuySuCo has been blaming poor yields and labour shortages for its problems.According to the United Nations Food and Agricultural Organization (FAO) this week, mainly due to improved crop prospects, sugar dropped a sharp 9.2 per cent since February to 187.9 points in March.GuySuCo itself has been facing severe cash shortages.Between 2013 and 2014, Government through the National Budget plugged $10B (US$50M) into GuySuCo despite misgivings from the Opposition. The Corporation had since last year been promising to table its revised Business Plan for 2014-2017.US$100M NEEDEDReportedly, GuySuCo is banking its return to profitability on a five-year cash injection from Government for $20B (US$100M) to fix the Skeldon factory, expand cultivation and improve yields, introduce more mechanized harvesting, reduce inefficiency at some of its factories in Berbice and Demerara and from value-added products.With Parliament not likely to green-light any subsidies in a hurry as Parliament has been dissolved for the May 11 elections,Cheap Jerseys, GuySuCo has been desperate for cash.GuySuCo is getting more for its packaged Demerara Gold sugar, but not enough to help its losses.Government has taken over the more than US$100M in loans owed for the Skeldon factory.Recently an attempt to purchase cane lands for housing via a $3B loan from the Guyana Geology and Mines Commission (GGMC) was blocked, after the Opposition objected over the legality of the transaction.Government was hoping that the Ministry of Housing/Central Housing and Planning Authority would have been accessing the loan and paying GuySuCo for the lands.On Wednesday,Wholesale NFL Jerseys China, in another development, GuySuCo announced that it had found a way out of the cash crisis.During a press conference at the National Communications Network (NCN) studios, GuySuCo and the Guyana Power and Light Inc (GPL) announced a US$30M deal from the sale of the co-generation plant at Skeldon factory. That plant had been built at a cost of US$32M and commissioned in 2009.Skeldon Energy Inc. (SEI), a special company owned jointly by GPL and National Industrial and Commercial Investments Limited (NICIL), will be funded with equity financing – US$5M from NICIL and US$4M from GPL.GPL, along with local and international financial institutions, will be plugging the balance of US$21M. Repayment of the financing will be via the sale of power under agreement to GPL and GuySuCo, it was disclosed.SEI’s takeover came into effect from April 1, 2015.The GuySuCo power-generating assets consist primarily of three Wartsila power plants with an installed capacity of 10 MW, and a co-generation bagasse plant with an installed capacity of 30MW.SEI has contracted Wartsila to rehabilitate, operate and manage the combined power plants effective April 1, 2015.? Wartsila will provide financing for the rehabilitation of the 10 MW plant.NO OFFER FROM TATELast week,Wholesale Jerseys China, GuySuCo denied accusations from its unions that it failed t