Jimmy Garcia Savinon, vice president of the Central Azucarero Consuelo, the company that took on the administration of the capitalized State Sugar Council government mills, says that they are not making it. Garcia says that prices of inputs, fuel and spare parts of machinery have not gone down with the appreciation of the peso. He also complained about the 13% exchange tax. He sees a bleak future ahead, especially with the imminence of the signing of the free trade agreement with the United States. He says that at the present costs, the country can only export making a profit to the preferential market of the United States. He also complained of the high lease cost of the state sugar mills, considering the investments that they have to make to stay in business.
Consorcio Canabrava, under Julio Hazim, also has complained of high cost of inputs. The Montellano sugar mill has announced the suspension of work, given that its production has not yielded a profit.
The sugar producers have requested that the government redefine its policy towards the companies that have taken on the operation of the state sugar mills.