A sugar storage facility in Dar es Salaam. In a move to protect local sugar factories, Tanzania’s President John Magufuli has ordered authorities to control importation of sugar under special permits. PHOTO | FILE
What you need to know:
In a move to protect local sugar factories, Tanzania’s President John Magufuli has ordered authorities to control importation of sugar under special permits.
The president’s directive comes amid business wrangles between local sugar producers and importers of the commodity, mostly from Thailand, Brazil, India and Indonesia.
Tanzania requires some 590,000 tonnes of sugar for industrial and domestic uses. Domestic consumption of sugar stands at 420,000 tonnes, while industrial demand stands at 170,000 tonnes per year.
In a move to protect local sugar factories, Tanzania’s President John Magufuli has ordered authorities to control importation of sugar under special permits.
The president’s directive comes amid business wrangles between local sugar producers and importers of the commodity, mostly from Thailand, Brazil, India and Indonesia.
The President revoked local import permits, which are usually issued to traders to import sugar for domestic consumption.
He said that Tanzania had failed to protect local factories as sugar importers made a killing.
“Our factories buy sugarcane from smallholder farmers. These factories produce sugar, provide employment and are a source of government revenue,” President Magufuli said at State House in Dar es Salaam early last week. “Although we have enough of our own stock, there are people in government still arbitrarily issuing permits to import sugar.”
The directive, however, does not affect the EAC mechanism where when a member state has a sugar deficit it can invite other members to export sugar to it. The application, under the EAC mechanism is usually discussed by the Council of Ministers and individual countries advertise tenders internally for traders to export sugar to the country in need.
Local production
The Agricultural Council of Tanzania welcomed President Magufuli’s move to ban sugar imports saying it would protect local producers.
A statement issued by ACT last week and seen by The EastAfrican said that the ban would encourage investors with large sugarcane plantations to expand them and provide technical support to outgrowers to increase production.
Adequate stocks
Minister for Industry and Trade Charles Mwijage said Tanzania has adequate stocks of sugar and the government will be taking measures to ensure availability of sugar for industrial and domestic consumption.
Tanzania requires some 590,000 tonnes of sugar for industrial and domestic uses. Domestic consumption of sugar stands at 420,000 tonnes, while industrial demand stands at 170,000 tonnes per year.
