FARAJA MGWABATI, 27th November 2009 @ 01:33, Total Comments: 1, Hits: 1018
TANZANIA is facing a shortage of 50,000 tonnes of sugar, which has prompted an increase of retail prices by 22 per cent in Dar es Salaam.
Following the shortage, the Sugar Board of Tanzania (SBT) has invited traders to bid for the importation of 50,000 tonnes of sugar to rescue the situation. A ‘Daily News’ survey in Dar es Salaam this week has revealed that retail shops were now buying sugar from wholesalers at 32,000/- per 25kg bag instead of the normal 25,000/-.
“I am surprised the price of sugar keeps on rising while the products are produced locally,” said Amon Nkomo of Manyovu Shop at Tandika Market in Temeke District.
At Kinondoni Market, Juliet Joel said they used to buy a 25kg bag of sugar below 30,000/- but now it has increased to 32,000/-.
“I now sell one kg at 1,500/-, which just gives me 200/- profit,” she complained.
The traders said prices started to skyrocket this month but they did not know what pushed up the prices. The SBT Acting Director General, Mr Apolinary Kisanga, told this newspaper that the board had invited interested importers to offset the deficit after noticing the shortage.
The country’s annual demand is around 300,000 tonnes. There are four local sugar producing companies that were expected to produce 317,000 tonnes this year. Projections were that TPC of Moshi was expected to produce 72,000 tonnes, Kilombero Sugar Company 140,000 tonnes, Kagera Sugar Company 50,000 tonnes and Mtibwa Sugar Company 55,000 tonnes.
Mr Kisanga said the amount of sugar to be imported was approved by a technical committee which includes local producing companies after consultation with the government.
Importers are expected to import minimum quantity of 1,000 tonnes and that no waver of tax is applicable to them until further consideration on adjusted import tariffs.
According to a recent report by the SBT Director General, Mr Mathew Kombe, sugar consumer prices are usually high because it is determined by the national distribution system.
“(The figure of) 1,400 per kg is justifiable because 700/- is production costs and manufacturer’s profit, while another 700/- is taxes and distribution costs,” he said.
According to TSB, a total of 32,000 tonnes of sugar were sold in the European Union this year and fetched 18 million US Dollars (about 23.4bn/-).
Total Comments on the above stories (1)
Comment
the more you can produce the better will be your chances of erning more dollars, euros, etc. With peoples´increasing awareness regarding "BIO-products" like cane sugar in the industrialized world such as the European union, beet sugar demand has become and will continue to be more vunerable in the course of time. Almost in every supper market in Germany, for instance, one can find cane sugar from
all over the world(third world, including Africa, Caribean, Asian...etc.).
People here, now do believe that cane sugar is natural, a product that does not undergo much chemical manipulation during the process of manufacturing. This is a good chance for the third world like Tz to undertake due diligence market research, so you can get access to this steadly growing cane sugar market. Most important, however, NO use of chemicals during refining the product, so-called "BIO"-product for health
reasons that has awaken very high in the industrialized nations of Europe.
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