THE public has been reassured by the Tanzania Sugar Producers that they haven’t increased the price of the commodity they sell to wholesalers and to report all those selling the sweetener at hiked prices.
Speaking at a press conference
yesterday, Tanzania Sugar Producers Chairman, Mr Ami Mpungwe explained
that he believed the increased sugar prices were a result of those
affected by the new system established by the government where the task
of importing gap or deficit sugar has been left to producers.
“Prior to this new system, businessmen
would acquire permits from the Sugar Board of Tanzania to import gap
sugar but evidence has shown that they imported in surplus and wouldn’t
pay the due taxes hence flooding the market and hurting domestic
industries,” he said.
The Sugar Board of Tanzania Planning
Development and Liaison Manager and acting Director General, Mr Abdul
Mwankemwa said that they were closely following up on the price of sugar
and that they will not hesitate to take legal action on all those
caught going against selling norms.
Mr Mpungwe said that at the moment there
are 32,000 tonnes in storage that is enough to cater for the sugar
demand until the gap sugar is imported but was quick to add that this is
a temporary arrangement because the primary goal of the producers is to
produce enough for the local market and then import and that the
country has all the potential to do so.
He said that scrutiny of the recent
sugar hikes suggest that businessmen are hoarding the sweetener because
of fears of shortages brought about by closure of some factories
shouldn’t be a reason because the nature of the sugar industry
necessitate closure during the rainy season.
“What the public needs to understand is
that sugarcane is a circular product and the closure of the plants has
no bearing to prices. While it is true that Kilombero and Mtibwa plants
are closed, TPC Moshi and Kagera are still operating, doubting of having
a shortage should be put away,” he explained.
He lauded the fifth phase government
particularly President John Magufuli for the deliberate efforts to
provide protectionism for local industries and for the Prime Minister’s
Office which has been given the mandate to work a formula for the
issuance of import permits from State House as directed by the
President.
The sugar industry has been facing a
number of challenges in the past such as smuggling of the product into
the country, dumping of the sweetener in the local market hitherto meant
for transit as well as industrial sugar being sold for human
consumption.
Demand for the sweetener in Tanzania
stands at 420,000 and 170,000 tonnes per annum for domestic and
industrial sugar, respectively, making it a total of 590,000 tonnes each
year.
Yet local industries can only produce
300,000 tonnes, thus each year there is a shortage of 290,000 tonnes for
domestic and industrial use. Of the 290,000 tonnes, 120,000 are for
domestic use and 170,000 for industrial production.
Kagera Sugar Chairman, Mr Seif Seif said
that in spite of the huge potential that Tanzania has in sugar
production, it is now the only country in the SADC region that isn’t an
exporter but the current efforts by the government are giving him
positive signs.
Mr Seif said that there was a time in
the country where the growth of sugar production was pegged at 23.5 per
cent and 325,000 tonnes was being produced but when protectionism of
local industries was removed, this production plunged to 96,000 tonnes
in the 1990s.
The producers sell a kilogramme of sugar
to traders for between 1,700/- and 1,800/- but the same has been hiked
to between 2,200/- and 2,500/- from between 1,900/- and 2, 100/- in
retail shops
No comments :
Post a Comment