Bagasse Impasse Holds Strong

Today, we can report that there is no give in the impasse between ASR/BSI and the B.S.C.F.A.  Cane farmers have instructed the B.S.C.F.A. to ask for intervention from the Sugar Industry Control Board, which is government’s entity in the industry. The B.S.C.F.A. has done so. But the Prime Minister has stated that he is reluctant to intervene in the matter, and would prefer that both parties resolve their own dispute. The reality is that that’s not going to happen, since there is not even the beginning of a compromise in the bagasse issue. The new crop is set to start in a few months, but there is no current agreement between the entities. So does that bode ill for the industry? Today News Five got an answer, and an update from the B.S.C.F.A.’s Committee of Management Chairman Alfredo Ortega.

Alfredo Ortega, Vice-Chairman, Committee of Management, BSCFA

“We sent the letter to the SICB. We got a short response from the Chairman in which he said that he will convene a meeting with the Board members, but as of this date we have not received a response from that, so we believe that there hasn’t been any meeting from the Board, so we are awaiting a response from them, and to see what will be their approval in this situation where we have asked for their intervention.”

Reporter

“Prime Minister has also given a press conference and has spoken on the matter and has stated that while he maintains that government is willing to pay for an independent expert, he doesn’t feel that government can intervene or swayASR’s decision in any way.”

Alfredo Ortega

Alfredo Ortega

“Yes we heard that from his conference that he had and we also heard that same issue with Mr. Montalvo when they had their after crop program in which he said that they don’t accept any international or third party intervention. On our side we said that since we cannot reach an agreement let us have this international or independent consultant so that he can look at both formulas and to come out with something viable for the farmers. So we stand on that at this point and we are awaiting a response from the SICB.”

Reporter

“Fred what’s next? How much of a threat is this to the industry on a whole, because I understand that the whole agreement is at stake if you all cannot reach an agreement on the payment of bagasse, there’s the agreement between ASR/BSI and the BSCFA on the way forward.”

Alfredo Ortega

“Well yes all that is on the line. We are aware of that and we are hoping that as they said with the interim agreement that was signed that they will be acting in good faith and they asked us to act in good faith…well we are looking forward to that same attitude in acting in good faith so that we can finalize this agreement which will include a quantum for bagasse.”

Ortega maintains that at this point the cane-farmers are not contemplating any delay in the new crop season, but are hoping that something is resolved in the near future.