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Sugar prices to rise even further

By: Melanie Aanyu

Aanyu Melanie | 95timefm

Sugar manufacturers and cane growers have warned that the increased retail sugar prices in Uganda are to persist, with no hopes of decreasing soon.

On average, sugar prices at retail now stands at 5,500 shillings a kilogram, up from an average of 4,000 shillings three weeks ago. This price according to manufacturers is expected to persist or even increase.

Wilberforce Mubiru, the immediate past Secretary for the Uganda Sugar Manufacturers Association, and the deputy general manager of the Sugar Cooperation of Uganda Limited-SCOUL, says that these prices are a result of the reduced sugar cane supplies from the growers, at a time when the number of processors has increased hence competition for the raw material which constitutes 70 percent of the production utilities.

Though Uganda so far has 39 licensed sugar manufacturers, only 16 are operational, and according to Mubiru, the Uganda Sugar Manufactures Association projected production of 700,000 tonnes for this year, against Uganda’s annual consumption of 400,000 tonnes.

However, he says many of the companies are producing at half capacity and the set target will not be hit. He adds that the sugar prices are yet to reduce until 2024, when the currently planted cane is ready.