As you heard, ASR - BSI was much exercised about that press release from the Sugar Industry Control Board, which was issued early this morning.
As you heard - the SICB, which regulates many aspects of the industry, makes it clear that the start of the upcoming crop season cannot happen without its approval.
This evening, our colleagues from CTV got a chance to speak with Chairman Marcos Osorio about what is being referred to as a first-time intervention of this nature. Here is his justification:
Marcos Osorio, SICB Chair
"We had the meeting with BSI on Thursday which was yesterday where they officially confirmed that the mill is ready to start on the 20th December as they had tentatively indicated. We are also aware that yesterday there was a negotiation meeting between BSI and BSCFA. Our understanding from BSCFA is that BSI rejected their proposal and made a counter-proposal. As a result of that in the interest of the good of every stakeholder; farmers, associations, and the mill, late last night we saw the need to put forward a press release where we are asking and informing stakeholders, the mill that starting the mill without prior approval by the sugar industry control board that's stated under the sugar act, no manufacturer can received any cane from any farmer or grower if the SICB has not approved it and also if it has not been published in the government gazette."
"In the past it had happened without any considerations to the law. Well, there was always an unanimous agreement between association and the mill. This time around it is not a unanimous agreement amongst farmers and the mill. So therefore, in the interest of not getting into any difficult situation and come Monday as a responsible chairman of the SICB and government we have sent out this press release informing farmers and the mill that the crop cannot start om December 20th. I must ask and I pledge to cane farmers please do not be pushed around by anyone in telling you go ahead prepare your cane and start your deliveries on Monday. The mill will open their gates, please if you do so it is at your own risk. We are saying as the government, the mill cannot take any cane, any delivery from anyone unless it is approved and agreed by the sugar industry control board."
So, the mill has been unable to work out its commercial differences with the BSCFA, but the best information to the press is that they are the only 1 out of all 4 cane farming associations that don't have a signed contract. We understand that the other 3 are ready to begin, but they can't because of this decision from the SICB. Our CTV colleague challenged the Chairman on the regulatory blockade being implemented for the entire industry. Here's that back and forth:
Reporter
"How would you respond to those who say for the sake of protecting BSCFA you are infringing on the rights of the other cane farmers who belong to the Corozal Sugarcane Producers Association, the Nothern Producers Association and the Progressive Sugarcane Producers Association?"
Marcos Osorio, SICB Chair
"Yes, and I would say that the decision is simply upholding the law and secondly, I must say we want to ensure a smooth and easy start of the crop. I must tell you that many farmers, leaders of the other associations that have signed are saying we will join with the other."
"I believe it is not infringing on the rights, but protecting the wellbeing of each and everyone and I believe if the farmers of all the associations unite, we will simply see a situation where everyone will win out of this situation that we are facing today."
Late this evening, our newsroom received copies of letters that representatives of the Corozal Sugar Cane Producers Association, the Progressive Sugar Cane Producers Association, and ASR/BSI wrote in response to the SICB's decree.
The Corozal Sugar Cane Producers say, quote, "Our farmers are geared and prepared for the start of the season on the 20th of December…… We request that SICB conduct the necessary procedures to Gazette the start of crop immediately… If the delay by the SICB… impedes our farmers' delivery, we hold the SICB responsible for compensating our farmers for the amount of cane they would have otherwise delivered." End quote.
In their letter, the Progressive Sugar Producers Association echoes that comment that they will hold the SICB responsible for earnings lost, and they add, quote, "It is alarming to note that the decisions of all stakeholders were not carried through by the SICB chairman…" End quote.
The UDP also issued a release this evening saying it "calls on all stakeholders…to immediately re-engage in good faith and resolve to hammer out an agreement that is fair to all parties, and to do so as promptly as possible for the survival of the industry...The UDP makes a special appeal to Government to intervene in bringing the parties together, and recommends that an independent expert be commissioned to assist in mediating a settlement..." End quote.
