Traders reject imported sugar
Sep 14, 2011
Hardly a month after the Government allowed business people to import sugar into the country tax free; traders in Busoga region have rejected the sugar, saying it is expensive.
By Donald Kiirya
Hardly a month after the Government allowed business people to import sugar into the country tax free; traders in Busoga region have rejected the sugar, saying it is expensive.
Angry retail traders have threatened to riot and block trucks ferrying imported sugar into the country if the price is not revised.
Traders voiced their concerns on Monday at the Kakira Sugar Works factory after the management asked them to buy the imported sugar at a price higher than the locally manufactured sugar.
The Madhvani Group-owned sugar factory in Jinja received a consignment of imported sugar two weeks ago.
“A 50-kilogramme bag of locally-made sugar costs sh130,000 at Kinyara, sh120,000 at Lugazi Sugar factory and 140,000 at Kakira, inclunding taxes, but we were surprised that the tax-free imported sugar is being sold at sh223,000 per 50-kg bag at Kakira,†Jomo Okumu, one of the dealers and a sugarcane farmer in Jinja, said.
Okumu added that many traders had paid Kakira two months ago for the locally-made sugar, but the company has failed to deliver.
“Traders paid money for sugar but have not even been given a single bag of sugar. When they imported sugar, management wanted to force us to take it yet, we paid for the locally-made one,†he explained, adding that this was against the initial deal.
He said the arrangement affected over 200 traders.
Juma Muyita, another trader said they would not accept the expensive sugar.
He also urged the company to work with the Government to reduce the prices of imported sugar.
Jim Mwine a director at the Madhvani Group, said Kakira management would meet and discuss the traders’ concerns.
“The major concern is how to sell the two types of sugar in the market, but management has agreed to take a medium price so that traders can also get a profit,†said Mwine, who is also the chairperson of the Uganda Sugarcane Technologists Association.
He said the Kakira management was discussing issues raised by traders, including failure by the company to release sugar that was paid for.
Mwine requested the traders to allow the Kakira management to consult the Government about the pricing of imported sugar, saying they would informed of the outcome after the negotiations.
Last month, President Yoweri Museveni authorised Kakira to import 23,000 tonnes of sugar into the country after the Government removed the 25% tax on sugar imports.
Hardly a month after the Government allowed business people to import sugar into the country tax free; traders in Busoga region have rejected the sugar, saying it is expensive.
Angry retail traders have threatened to riot and block trucks ferrying imported sugar into the country if the price is not revised.
Traders voiced their concerns on Monday at the Kakira Sugar Works factory after the management asked them to buy the imported sugar at a price higher than the locally manufactured sugar.
The Madhvani Group-owned sugar factory in Jinja received a consignment of imported sugar two weeks ago.
“A 50-kilogramme bag of locally-made sugar costs sh130,000 at Kinyara, sh120,000 at Lugazi Sugar factory and 140,000 at Kakira, inclunding taxes, but we were surprised that the tax-free imported sugar is being sold at sh223,000 per 50-kg bag at Kakira,†Jomo Okumu, one of the dealers and a sugarcane farmer in Jinja, said.
Okumu added that many traders had paid Kakira two months ago for the locally-made sugar, but the company has failed to deliver.
“Traders paid money for sugar but have not even been given a single bag of sugar. When they imported sugar, management wanted to force us to take it yet, we paid for the locally-made one,†he explained, adding that this was against the initial deal.
He said the arrangement affected over 200 traders.
Juma Muyita, another trader said they would not accept the expensive sugar.
He also urged the company to work with the Government to reduce the prices of imported sugar.
Jim Mwine a director at the Madhvani Group, said Kakira management would meet and discuss the traders’ concerns.
“The major concern is how to sell the two types of sugar in the market, but management has agreed to take a medium price so that traders can also get a profit,†said Mwine, who is also the chairperson of the Uganda Sugarcane Technologists Association.
He said the Kakira management was discussing issues raised by traders, including failure by the company to release sugar that was paid for.
Mwine requested the traders to allow the Kakira management to consult the Government about the pricing of imported sugar, saying they would informed of the outcome after the negotiations.
Last month, President Yoweri Museveni authorised Kakira to import 23,000 tonnes of sugar into the country after the Government removed the 25% tax on sugar imports.