PIUS RUGONZIBWA, 23rd January 2010
TANZANIA is facing a shortage of sugar, prompting importation of 80,000 tonnes of the commodity to curb the deficit.
Following the scarcity, retail prices have shot up by about 17 per cent with most shop points now selling the item for 1,600/- per kilogramme up from 1,400/- charged before.
The Sugar Board of Tanzania (SBT) Director General, Mr Mathew Kombe, told the Sunday News that the Board had applied for the importation of 80,000 tonnes of domestic sugar to reverse the dire situation, but approval had until then not been granted.
As the authorization delays, things may get even tougher for consumers. I have been reminding the authorities of the need to speed up this process, he said.
The board, according to him, has written to the Minister of Finance and Economic Affairs, applying for the waiver of import duty.
A survey by the 'Sunday News' in the city showed that many retail shops bought sugar from wholesalers for between 32,000/- to 33,000/- per 25kg per bag instead of the normal 25,000/-.
It is inevitable to sell it for a higher price because wholesalers would always increase the price automatically, forcing us to do the same to survive, one retailer noted.
Mr Kombe noted that the commoditys price in the world market had also increased to 700 US Dollars per metric tonne, from 250-400 US Dollars some three years ago.
Reasons behind are that Brazil as the main producer and India as the main importer are now faced with production shortfalls associated with changing weather patterns, he said.
At home, the DG said, local producers are also unable to satisfy the countrys demand, because of having strategic plans like expansion schemes that are projected to cost them a lot of resources, affecting their production goals.
The country's sugar demand annually is more than 330,000 tonnes, while all four industries namely TPC, Kilombero Sugar Company, Kagera Sugar Company and Mtibwa Sugar Company managed to produce about 279,000 tonnes only last year.
And since May, last year, to- date, according to available statistics, around 240,000 tones has been produced, signalling the same production trend like the previous season, he said.
Mr Kombe said the board was increasingly concerned with the shortage of sugar repeatedly reported in the country. He added that it was planning to meet with stakeholders over the situation.
We are planning to meet in Arusha to see how we can act on this peculiar crisis. It is important to act now before things are completely out of hand, he said.
The situation for industrial sugar is still stable, with reports predicting the rise in consumption from 70,000 last year to around 115,000 this year.
source : http://www.dailynews.co.tz/home/?n=6935&cat=home
TANZANIA is facing a shortage of sugar, prompting importation of 80,000 tonnes of the commodity to curb the deficit.
Following the scarcity, retail prices have shot up by about 17 per cent with most shop points now selling the item for 1,600/- per kilogramme up from 1,400/- charged before.
The Sugar Board of Tanzania (SBT) Director General, Mr Mathew Kombe, told the Sunday News that the Board had applied for the importation of 80,000 tonnes of domestic sugar to reverse the dire situation, but approval had until then not been granted.
As the authorization delays, things may get even tougher for consumers. I have been reminding the authorities of the need to speed up this process, he said.
The board, according to him, has written to the Minister of Finance and Economic Affairs, applying for the waiver of import duty.
A survey by the 'Sunday News' in the city showed that many retail shops bought sugar from wholesalers for between 32,000/- to 33,000/- per 25kg per bag instead of the normal 25,000/-.
It is inevitable to sell it for a higher price because wholesalers would always increase the price automatically, forcing us to do the same to survive, one retailer noted.
Mr Kombe noted that the commoditys price in the world market had also increased to 700 US Dollars per metric tonne, from 250-400 US Dollars some three years ago.
Reasons behind are that Brazil as the main producer and India as the main importer are now faced with production shortfalls associated with changing weather patterns, he said.
At home, the DG said, local producers are also unable to satisfy the countrys demand, because of having strategic plans like expansion schemes that are projected to cost them a lot of resources, affecting their production goals.
The country's sugar demand annually is more than 330,000 tonnes, while all four industries namely TPC, Kilombero Sugar Company, Kagera Sugar Company and Mtibwa Sugar Company managed to produce about 279,000 tonnes only last year.
And since May, last year, to- date, according to available statistics, around 240,000 tones has been produced, signalling the same production trend like the previous season, he said.
Mr Kombe said the board was increasingly concerned with the shortage of sugar repeatedly reported in the country. He added that it was planning to meet with stakeholders over the situation.
We are planning to meet in Arusha to see how we can act on this peculiar crisis. It is important to act now before things are completely out of hand, he said.
The situation for industrial sugar is still stable, with reports predicting the rise in consumption from 70,000 last year to around 115,000 this year.
source : http://www.dailynews.co.tz/home/?n=6935&cat=home
