CUBA-ECONOMY: Sugar Production Down, Economic Recovery Slows

By Dalia Acosta Reprint | | Print |

Dalia Acosta

HAVANA, Jun 1 1997 (IPS) - The 1996/97 sugar harvest, due to end next week, will reach 4.2 million tons – compared to the Cuban government’s target of 4.45 million tons, according to industry sources.

The shortfall will setback the recovery of the sugar industry and would affect the year’s overall economic growth predictions, the sources said.

Government officials indicated a late disbursement of 350 million dollars in loans “conspired against the official forecasts.” Pressure from the US Helms Burton Law, which has strengthened the blockade on Cuba, delayed agreed foreign funding and even led to the cancellation of some commitments, officials said.

Official sources maintained, however, the Cuban economy would still move forward, although at a lower growth rate than the 7.8 percent achieved in 1996.

According to Minister of Economy and Planning, Jose Luis Rodriguez, last year’s growth was due to a general recovery which included the sugar sector. The increase in Gross Domestic Product was also based on an 8.5 percent improvement in work productivity and 54 percent in investments.

“The growth rates in over the next few years will not be low. That is, we will not be seeing a contraction. We believe the worst is over,” said Rodriguez earlier this month.

The Cuban economy should grow by five percent this year, according to official plans which predicted improvements in all sectors, including sugar harvests of more than 4.45 million tons.

President Fidel Castro told the national press the predicted increases in tobacco, nickel, fish and other branches of production could partially cover the sugar deficit.

The economic crisis, which broke out in 1990, directly affected the sugar sector with its eight million tons of production in 1990 falling to 3.3 million in 1995, the lowest level since Castro took power. This drastic fall in harvests caused economic losses of some 200 billion dollars, according to official sources.

Agricultural experts and local authorities have put the new shortfall down to the lack of sufficient sugarcane to guarantee the industrial efficiency of the 150 or so national mills.

Castro said on May 1, that some 200,000 tons of sugar crops had been lost in the centre of the island when hurricane Lili struck seven provinces this year. News reports, however, said all blame could not be attributed to the hurricaneas there were many plantations with low yields due to years of exploitation, the deficient use of fertilisers and misuse which affected their plant cycle.

Another cause appears to be the bad practice of milling sugar cane plants supposedly for the next crop at the end of the harvest, a practice used to meet pre-agreed production quotas or due to the need for hard currency income.

Specialists believe the small amount of cane available is also due to the fact that over recent years there has been no renovation or development of new plantations. This situation can be put down to the lack of material resources, said local authorities. Some 30 percent of unproductive lands have still not been replaced with new crops, and 40 percent of the plants are not being properly attended.

Local experts warned the sugar sector would have to be reshaped if the farming system could not respond to the industrial demand – with processing capacity currently at double present production.

This reshaping would fit in with the reform process brought in by the government to improve the efficiency of State companies and could include the total or temporary closure of the inefficient factories and the relocation of thousands of industrial workers into agriculture.