But future of industry dependent on the next cane crop

The Treasury notes for ten million dollars will keep the industry afloat for some time. The government has also decided to provide to BSI, an additional million dollars, initially set aside to improve sugar roads. The PM said that while the fund is unconditional, hopefully BSI will use some of it on road repairs. Eleven million dollars, however, won’t rescue the sugar industry from the brink of collapse. All relevant partners agreed that the bailout is a temporary one and more will have to be done to stabilize the industry. And according to BSI’s Chairman, Joey Montalvo, the future of the entire industry now lies on the back of the next cane crop.

Joey Montalvo, Chairman, B.S.I.

joey montalvo

“This rescue package is only the beginning. We have to look forward to securing our medium and longer term debt. I will tell you right now that it is not a case of solvency or insolvency. It is a case where as any business man would understand that there is need for working capital. In our case we have to pay our cane farmers even if we started business on day one, we would need money to pay for cane deliver to the mill which will make sugar which will not be sold until towards the end of January or February. And until such time that we have that income, we still have to pay our way through. It is unthinkable that we could even countenance the thought of having a poor crop next year. That will certainly be detrimental to securing the future of the sugar industry because we have to go beyond this crop. This crop could be our last but we do not intend it to be our last crop.”

The house will meet on Thursday to approve the ten million dollar loan.