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Sugar Board Works to Regulate Prices

aiming to achieve self-sufficiency by 2025. This includes expanding sugarcane farms and modernizing factories like the Mkulazi II (Mbigiri) plant, which began operations in December 2023 and can produce 50,000 tons annually
July 6, 2024
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The Sugar Board has been actively working to regulate sugar prices and address the recurring shortages that have plagued Tanzania.

The Board’s recent focus has been on determining the real production costs of sugar to ensure fair pricing for consumers. This effort comes in response to significant price hikes caused by insufficient sugar supplies in shops, which have been a burden for many consumers

SBT Director General Prof. Kenneth Bengesi highlighted that earlier reluctance from producers to import sugar, despite having licenses, exacerbated the scarcity. This led the government to invoke the Food Security Act, allowing emergency imports to mitigate the shortage

To further combat the issue, the government has implemented price caps on sugar, setting shop prices between Tsh2,700 ($1.07) and Tsh3,200 ($1.27) per kilogram. However, this move has faced resistance from producers who argue that the caps are too low and make their operations unprofitable. Consequently, several factories have slowed or halted production, worsening the shortage

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The government has also initiated measures to boost local production. Prime Minister Kassim Majaliwa announced a plan to increase sugar production by 53.5 percent over the next two years, aiming to achieve self-sufficiency by 2025. This includes expanding sugarcane farms and modernizing factories like the Mkulazi II (Mbigiri) plant, which began operations in December 2023 and can produce 50,000 tons annually

Despite these efforts, the gap between production and demand remains significant. The national requirement for sugar stands at approximately 807,000 tons annually, but local production has fallen short due to factors like adverse weather conditions. To address this, the government has issued permits to import an additional 100,000 tons of sugar to stabilize the market

The Sugar Board’s initiatives, coupled with government policies and support from stakeholders, aim to increase local production, stabilize prices, and ultimately make Tanzania self-sufficient in sugar by 2025

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