Meeting on Escalating Sugar Prices
On Friday 12th May 2017, the Minister of Trade, Industry and Cooperatives Hon. Amelia Kyambadde officially briefed the press together with the leaders of sugar Manufacturers Associations on the increasing sugar Prices and government position on the same.
The press briefing followed a meeting with the Sugar distributors, wholesalers,retailers and the sugar millers.
In the statement;the government urged the millers to ensure that the factories maintain normal production. In this regard, Kakira sugar resumed normal production on 12th May 2017 and postponed its regular maintenance.
Lugazi sugar also agreed to postpone its maintenance program from June to October 2017 so that normal sugar production is maintained. With improved rains, the millers expect normal supply of sugar cane from the out growers to normalize which will result into increased sugar production
The minister informed the Press that Kenya and Rwanda have obtained duty remission import of 100,000 and 70,000 MT respectively which will address the regional shortage that has partly contributed to the problem.
The Ministry will continue to monitor sugar supply stocks from millers, distributors and retailers to ensure that the retail price of sugar does not exceed UGX 5,000 per kilogram.
Millers shall provide the Ministry with monthly stock levels and streamline distributing of sugar to their registered agents.
The Millers pledged to give priority to the domestic market so that the consumers are assured of a stable sugar supply.
Conclusion
With the above position, the Ministry is convinced that the sugar supply situation should stabilize by the end of May 2017 and market speculation should not arise.
The Ministry, therefore, strongly condemned any continuous hoarding and speculation in the sugar market in the country.
In her statement,the Minister stressed that if the malpractices persist, the Ministry will be compelled to revoke trading licenses of the culprits.
The Ministry will closely monitor the sugar market situation and will take alternative measures to ensure that stability in the sugar market prevails.
