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| Mr Kombe |
SUGAR Board of Tanzania (SBT) has said
it has no plans to intervene in sugar pricing, accusing some dishonesty
distributors of accumulating the essential commodity to create
artificial shortage in the market.
SBT Director General Mathew Kombe said
in in Dar es Salaam on Wednesday that, “There are no plans to intervene
in sugar prices for the time being…the market forces will remain the
determining factor in sugar pricing.”
He was commenting on possible
sugar price increase in the wake of increased power tariff.
The short term plans, he said would be
to increase output in the four producing factories and importing certain
amount to cover the deficit while more investments in the sugar sector
would provide the lasting solution in the long-run.
Mr Kombe said the
sugar prices by all factories have always remained stable, attributing
the price changes to distribution channels.
He, however, observed that for the
imported sugar, the prices depend largely on the commodity value in the
world market.
Likewise, sugar prices is likely to remain less
unaffected despite power tariff, thanks to alternative energy generated
by the commodity’s producing firms.
“Almost all the sugar factories no
longer depend on the national grid…they generate their own source of
energy from sugarcane remains,” remarked Mr Kombe.
Effective January
15, this year, the energy regulator approved an electricity price hike
of 40.29 per cent for the state-run power firm Tanzania Electric Supply
Company (TANESCO), an increase that would affect power users at
individual, commercial and industrial levels.
Despite the government interventions few
months ago, sugar prices have continued to soar, with prices in some
regions, especially those in the borders, reported to have reached
3,000/- a kilogramme. In Dar es Salaam, sugar’s retail prices range
between 2,000/- and 2,400/-, per kilo.
The interventions came following
reported incidences of sugar smuggling to the neighbouring countries
particularly Kenya and Uganda, which were facing acute shortage of
sugar. Such incidences pushed sugar prices up in the local market.
Tanzania’s sugar consumption is
estimated at 480,000 tonnes per annum, but the four manufacturers -
Tanganyika Plantation Company (TPC), Kilombero, Kagera and Mtibwa Sugar -
have a combine production capacity of only 320,000 tonnes.
Last year, for instance, sugar demand
exceeded 330,000 tonnes at the time when production stood at 250,000
tonnes, creating a deficit of nearly 80,000 tonnes. The balance was
covered by imports.
Source: Daily News www.dailynews.co.tz, reported by by Sebastian Mrindoko
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