Millers are stuck with sugar over limited market
Ugandan sugar millers are stuck with a surplus of 160,000 metric tonnes of Sugar, the Uganda Sugar Manufacturers Association (USMA) has revealed.
They say this is due to dwindling export market for Ugandan sugar.
Against the above background, 14 sugar manufacturers today petitioned the Parliamentary Committee of Trade and Tourism to push government to find more export market for sugar.
According to figures from UUSMA, in 2020 local sugar millers registered a surplus production of 150,555 metric tones and this year the surplus is estimated to shoot up to 160,000 metric tones.
Out of the 90,000 metric tones of Ugandan sugar that Kenya cleared to be exported to its market this year, only 32,000 metric tones have been allowed from January to August 2021
However, Trade Ministry says the industry is oversubscribed which is causing a market crisis.
Traders explained that they have not benefited from the East African Common market as Ugandan sugar is facing rejection and import duty in regional markets. They also decried unfair sugar policies in South Sudan and Rwanda which import duty free sugar from outside the East African Market which impedes the regional sugar industry.
However, the minister of trade, Francis Mwebesa told MPs on the Trade Committee that there is over investment in the sugar sector which is causing a sugar market crisis.
MPs are concerned that if government can’t find sugar market in the short run, many sugar milling factories are going to close sooner than later.
The committee also questioned the impact of the East African common market protocol as Ugandan products continue to face resistance on markets of partner states.
