Uganda’s Minister of Trade, Industry and Co-operatives Amelia Kyambadde has on Thursday termed as ‘an emergency’ the run-away sugar prices.
This month, several sugar consumers have already expressed their rage on different media platforms asking government to intervene to arrest the hike in price that has seen a kilogramme of sugar has jumped by Shs1,500 from Shs3,500 that has sparked fear that prices of other products such as bread, whose ingredients include sugar, will also be increased.
Hon. Amelia Kyambadde said: ‘I am meeting sugar factory owners because this is an emergency, they have to release reserves or we’re going to allow people to import.’
She also revealed that her ministry had called for a meeting of sugar manufacturers and other key stakeholders to discuss the hiked sugar prices.
Uganda has a total of 23 registered sugar producing companies among which are G.M Sugar Ltd, Uganda Crop Industries, Mayuge Sugar Ltd, Seven Star Sugar Ltd, Kinyara Sugar Ltd, Kakira Sugar Ltd and Kaliro Sugar Ltd.
When asked where government did not anticipate for sugar price fluctuations, Hon. Kyambadde said, ‘We can not plan for natural calamities like climate change. Uganda is actually doing better in East Africa; Tanzania is struggling, even Rwanda is importing from Zambia.’
Industrial experts attribute the rise in prices to festive season shopping speculation and sugar mills producing below capacity. Because of the festive season sugar being an ingredient used in the production of other products such as confectionary items it’s highly demanded and some speculators cause panic in the market
According to statistics from Uganda Sugar Manufacturers Association (USMA), Uganda consumed about 350,000 metric tonnes last year but this is expected to increase to 360,000 tonnes this year judging from the demand.
