COMMODITIES-CUBA: Castro Says Sugar Sector Needs Foreign Financing

HAVANA, Dic 17 (IPS) - Cuban President Fidel Castro admitted that his country's sugar industry is in need of foreign financing in order to recover and bring production up to usual levels.

"Different investment formulas are being discussed to obtain higher quality sugar cane and reduce costs," Castro said.

The hub of Cuba's economic activity, the sugar harvest took a nosedive in 1990 due to a lack of fuel, fertilisers and herbicides which led to a decline in production.

From the 8.4 million tonne yield produced in 1990 - when the current economic crisis began - the harvest dropped from 7.6 million tonnes in 1991 to 7.0 in 1992, 4.2 in 1993, and 4.0 this year.

The specialised British firm E.,D. and F. Man predicted a 3.5 tonne yield for October, but less optimistic local experts project a 3.0 million tonne harvest.

Either way, a record low would be hit this year, as the lowest yield seen since Castro took power was the 1962-63 3.8 million tonne harvest.

In his closing speech on Friday to the ninth national forum on science and technology, the Cuban President stressed the need for external financing, particularly for the purchase of fertilisers, herbicides and other products necessary to increase production.

By means of an accord with Spain's state-run monopoly, Tabacalera S.A., tobacco production has been opened to foreign capital.

In exchange for part of the yield of the prized Cuban tobacco used in Havano cigars, the Spanish firm provides credits to buy the inputs necessary to produce a decent crop.

Despite a general opening of the Cuban economy to foreign capital, until November the sugar industry had remained closed to investment.

However, on Oct. 30, Vice-President Carlos Lage announced that "various proposals are already being considered in the area of sugar production, which has also awakened great interest."

© Inter Press Service (2014) — All Rights Reserved. Original source: Inter Press Service

Where next?

Browse related news topics:

    Read the latest news stories:

    Learn more about the related issues:

      Advertisement