Roger Clarke has conceded that Government-owned sugar factories would lose between US five and eight cents per pound on exported sugar this year, due to high production costs.

Clarke, the agriculture minister, told the House of Representatives on Tuesday that the average cost of sugar produced by the Sugar Company of Jamaica (SCJ) factories – Frome in Westmoreland, Monymusk in Clarendon, Bernard Lodge in St Catherine, Long Pond in Trelawny, and Duckenfield in St Thomas – averaged about US28 cents to US30 cents per pound, compared to a projected sale price per pound of US22 cents to US23 cents per pound.

He was responding to questions posed by leader of the opposition Bruce Golding on the state of the local sugar industry.

In follow-up questions to those he had tabled previously in the House, Golding asked the minister what was the average cost of production per pound of sugar in the SCJ factories, based on the last crop.

Clarke rated Frome the best performer and within the ballpark of efficiency, with an average production cost of about US20 to US22 cents per pound. He said that Bernard Lodge and Monymusk were about US30 cents per pound, the St Thomas factory about US25 cents per pound and the worst performer, the Trelawny factory at over US60 cents per pound.

He said that the average production cost for the factories was about US28 to US30 cents per pound.

Asked by Golding what price he expected Jamaica would get per pound for its current sugar crop, based on the new pricing regime, Clarke said the cut in European Union (EU) prices would be about five per cent this year and the export price should end up at about US22 cents to US23 cents per pound.

But the minister showed obvious disappointment with access to funds which are to be made available by the EU in tandem with the reduction in the price paid for regional sugar.

In response to questions from Golding about funding from the European Union to help the country overcome reduced prices and protection, Clarke announced that the first draw-down on the funds of euro5.2 million, which had been expected from November 6 last year, is now likely within the first six months of this year.

“We were told that it would come on stream in the first quarter of this year, then, eventually they said within the first half of this year. Getting money out of the EU is kind of challenging, you know,” the minister said.

However, he said that he was satisfied that the commitment was there and the Government was anticipating the first draw-down by the end of June. He said that the Government was expecting to receive a total of euro16-20 million by 2013.

However, in response to Golding’s question about conditions attached to the utilisation of the funds, he said that the money would go into the consolidated fund (budget) and not directly to the industry.

“Support for the sugar industry must be within the purview of the Government,” said Clarke. “The Government must make up its mind about that. What I do know, from indications that I have gotten, is that they would like to see private sector involvement in a significant way in the sugar industry.”