Sugar |
The minister of
Trade, Industry and Cooperatives Amelia Kyambadde has dismissed reports
that cabinet plans a tax waiver for imported sugar to drive down sugar
prices in the domestic market.
Her reaction was
triggered by a story in the Daily Monitor titled, "Cabinet agrees to cut
sugar prices" which was published on yesterday, November 28.
"As the sector
minister, I wish to categorically state that the story is inaccurate,"
Kyambadde told journalist at the Uganda Media Center today.
"Government has not
taken any decision to reduce taxes on imported sugar. In this regard
therefore, government cannot import duty free sugar since. We have
enough stocks and prices are stabilizing steadily. We therefore, demand
that Daily Monitor withdraw this inaccurate story henceforth."
Scrapping taxes on
imported sugar means imported sugar from neighboring countries such as
Kenya will sell cheaply in the market, something that may trigger
further market price distortions.
Kyambadde said
sugar prices have steadily reduced from an average Shs 8,500 in May this
year to between Shs 4,500 and 5,000 in retail shops.
In April this year,
a kilogram was priced at about Shs 2,500. As demand increases in
countries such as South Sudan, where Uganda exports some of her sugar,
prices in the domestic market tend to increase.
However, some sugar
millers say they are currently operating below capacity, a situation
they say has forced them to lay off workers. For instance, Kakira Sugar
told Uganda Radio Network recently that the company is "failing to
break-even financially in our operations [will lead us] inevitability to
lay off 4,000 employees."
Current sugar deficit in the market is estimated to be at more than 200,000 tonnes according to reports
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