Uganda government has stood firm and sure its ground regarding the sugar saga twists and turn tussles that has been a subject matter in the media for a week now. The inflation rate has little to be a major factor in regard to the up and down of the commodity price.
The Ministry of Trade and Co-operatives has stated that sugar price should not at all cost exceed Shs 5,000 per kilogram.
The ministry has also mentioned it will keep alert and on guard to monitor the sugar supply stocks to ensure the retail price is not altered.
The ministry has warned sugar dealers against hoarding sugar in the wake of the rising prices of sugar. Some sugar dealers have been stockpiling sugar expecting to get large profits as the sugar prices rise.
The ministry has said it will keep a keen eye on sugar millers asking them to provide it with monthly stock levels. They have also asked millers to streamline distribution of sugar to their registered agents.
Sugar prices on the market have dropped high sh8,500 to about sh5,000 per kilogram. But shop keepers can vary the prices depend on the supply and the location.
Amelia Kyambadde minister of trade, industry, and cooperatives in a statement to Parliament condemned hoarding and speculation in the sugar market in the country.
“If these malpractices persist, the ministry will be compelled to take alternative measures. The ministry will therefore closely continue monitoring the sugar market situation. We will take alternative measures to ensure that stability in the sugar market prevails,” Kyambadde said.
Kyambadde expressed government’s concern over the escalating prices of sugar nationally and regionally. “The ministry has held meetings with millers and distributors over the issue”.
She cited the main causes of price rise to be the prolonged and harvesting of immature sugar cane. Other causes were regional arising from increasing demand caused by a gap of over 300, 000 metric tonnes in Kenya, and 40,000 metric tonnes in Rwanda.
Measures agreed upon
“The government has urged the millers to ensure that the factories maintain normal production. In this regard, Kakira sugar has postponed its regular maintenance. Lugazi sugar works also agreed to postpone its maintenance program. With improved rains, the millers expect normal supply of sugar cane from the out growers to normalize and this will increase sugar production,” Kyambadde noted.
She said the millers have pledged to give priority to supplying the domestic market so that the consumers are assured of a stable sugar supply. Kyambadde expressed government’s concern over the escalating prices of sugar nationally and regionally. “The ministry has held meetings with millers and distributors over the issue”.