GEORGETOWN, Guyana (AP) — The Government of Guyana says it will give the state-owned sugar company a  US$5-million grant to spur production following last year’s large-scale strikes and heavy rains.

Agriculture Minister Robert Persaud said Friday that the money will be used to pay production incentives to workers who qualify.

Disputes between workers and the Guyana Sugar Corporation last year led to strikes and the lowest production in a decade of only 219,000 tonnes (199,000 metric tonnes).

Guysuco owes commercial banks and other creditors about US$15 million and has been struggling to pay salaries. More than 20,000 workers went on strike in November to demand pay raises, which Guysuco said it could not afford. The Guyana Agricultural and General Workers Union staged a one-day walkout in October for similar reasons.

The union also had asked the government to temporarily shut down a US$200-million Chinese-built sugar mill so it could repair mechanical defects.

Guyana has previously penalised the state-owned China National Technical Import and Export Corporation for the problems.

The South American country is the Caribbean’s leading sugar producer.