Uganda: MPs Want Govt to Act On Sugar Prices

sugar

Parliament has poked holes in a statement by government explaining causes of the current sugar crisis characterized by high prices.

Instead, the House wants government to explain clear strategies employed to end the problem.

"I don't know whether you know how much pleasure our people have when they take sugar," said Rebecca Kadaga, the Speaker of Parliament in Kampala last week.

Earlier, government, in a statement tabled by Mr Michael Werikhe, the minister of State for Industry, had indicated to Parliament that sugar prices would be maintained at Shs5,000 to strike a balance between traders and consumers' interests.

Mr Werikhe also said sugar prices had dropped from Shs8,500 to Shs5,000, but the Speaker said Shs5,000 is still too high for Ugandans upcountry.

She demanded that the price be revised downward to make it more affordable for ordinary Ugandans.

"We want a strategy for pulling down the prices of sugar," Ms Kadaga demanded.

Mr Werikhe indicated in the statement that the rise in prices of sugar between November 2016 and May 2017 had been caused by a number of factors, mainly prolonged drought stretching for more than nine months.

The minister also said the problem was worsened by regional factors, hinged on the forces of demand and supply.

"There was increasing demand caused by a gap of over 300,000 metric tonnes and 40,000 metric tonnes in Kenya and Rwanda, respectively," he said.

To mitigate the situation, Mr Werikhe said government has urged the millers to ensure that the factories maintain normal production while giving priority to local markets for sustainable supply levels.

The minister also said the ministry of Trade will monitor sugar supply stocks from millers, distributors and retailers to ensure that the retail price of sugar does not exceed the target price.

Meanwhile, Ms Winnie Kiiza, the Leader of Opposition in Parliament, questioned the undertaking, citing the existing economic policy and trade regulations.

"How will you fix prices in a free market economy?" She asked, adding: "As you do your negotiations, pay attention to how you are going to do this in line with the forces of demand and supply."

Ms Kiiza also asked the minister to explain why sugar bought from DR Congo costs Shs3,000 yet the Congolese traders buy the sugar from Uganda.

Other lawmakers including Cecilia Ogwal (FDC-Dokolo) and Francis Zaake (Ind-Mityana Municipality) blamed government for watching on as traders hoard sugar.

Mr Werikhe, however, said there were elements of traders involved in hoarding, but promised that government would take action and curtail price fluctuations.

Government has been given up to Tuesday (tomorrow) to come up with a comprehensive report on sugar, which should include a clear strategy to further trim the prices.