Chapter One

The Problems which affected the sugar industry in the British Caribbean are:

1. Labour
2. Capital
3. Technology
4. Free Trade
 Chapter Two

Labour - Since slavery have been abolished, slaves had become more expensive which
caused an uncompetitive rise in the price of sugar. Due to this labor, became scarce and
expensive.

Capital - The planters lacked capital in which they needed for wages and labour saving
equipments and equipments. Up until the end of this period Majority of estates still used
the same old techniques. The wage level was considerably high in territories where land
was available and where peasantry was developing well. Two territories associated with
this are: Trinidad and British Guiana who were in the expansion and establishment
process.
By 1854 a number of estates became encumbered due to the fact that the planter’s were
filled with debt. The lack of capital forced them out of production because they could not
repay their debts. Jamaica and Grenada had the highest amount of abandoned estates.
The fact that these estates were encumbered their value fell tremendously. In some cases
estates owed their taxes and because of this government workers could not be paid the
salaries.

Technology -
emancipation gave rise to the use of Machinery. Some of the planters tried items of
machinery such as the centrifugal systems the plough, harrow and vacuum pans on their
estates. Others introduced the railways. Trinidad, British Guiana and St. Kitts introduced
steam mills. Also some planters being in debt could not be able to afford the machinery
they needed for production. The enslaved also would abuse and destroy estate
equipment which is known as industrial sabotage.

Free market - Before equalization there was no help to the West Indian interest. The price
of sugar fell almost immediately from 33-25/10d per 50 kg. Due to the fact that the English
would not lend money to any companies and banks that specialised in Caribbean issues,
by 1847, 13 leading West Indian companies became bankrupt. The Planters Bank in
Jamaica and the West Indian Bank both closed for good and because of these planters
could not borrow money to cover their losses.saqa
Around 474 sugar and coffee plantations went out of business in Jamaica between the
years 1846 and 1852. By the year 1858 Grenada’s sugar production was half that of the
last year of slavery and Montserrat, St Vincent and Tobago were two thirds. After the
Equalization act was passed, Planters tried to reduce cost by cutting wages by half, to
this the labourers did not sit still. Due to the many protests that were occurring on the
planters’ estates they tried to compensate the workers for the loss of their earnings.