6. The Consultation heard country statements from
participants on issues, constraints and policy options with regard to their respective
industries.
7. It was evident from the presentations that the sugar
industry was of the utmost importance to the economies of the majority of the ACP States.
It had firm linkages with several other major economic activities.
8. The sugar industry clearly played a significant part
in all aspects of the social and economic life of the States concerned, and the
delegations emphasized the need for the survival and strengthening of this vital industry.
9. Participants stressed the absolute imperative
that the benefits of the SP and the SPS Agreement be preserved and enhanced. The need for
reform and rationalization of the various industries was recognized as essential. Several
issues and constraints common to the broad majority of the Sugar Protocol States were
highlighted. The major broad areas of concern were as follows:
- high production costs and declining crop yields
- negative pressures on agricultural land use stemming
from urbanization
- declining investment due to a sense of uncertainty
in the sugar environment
- economic and logistical problems with irrigation
- ageing mills and related operational equipment
- vagaries of weather
- high cost of inland and sea transport
- urgent need for upgrading agronomic techniques,
fertilizer use, pest control
- problems related to disposal of mill effluents and
solid wastes
- soil erosion which greatly hampered output.
10. The respective States had adopted or expressed a
commitment to adopt a wide range of policies to directly address some of these challenges
and to meet the overarching objective of improving efficiency and productivity of their
sugar industries.
11. To address efficiency and improved
productivity, the measures being undertaken included the:
- Rationalization and improvement of factory
performance
- Privatization
- Strengthening of agricultural services and upgrading
of research and development efforts
- Establishment of national training institutes with a
view to national capacity building in all aspects of sugar cultivation and manufacturing
- Adapting appropriate technology in both field and
factory
- Investment in irrigation and drainage to counter the
effects of adverse weather conditions
- Fiscal and other measures to check the encroachment
of urbanization on sugar lands
- Revision of cane payment systems including payment
based on quality
- Adopting selective use of mechanization of field
operations
