Sugar price shoots to sh5, 000 a kilogram

Photo by Juliet Kasirye

The price of a kilogram of sugar has shot up to sh5, 000.

Previously, a kilogram of sugar cost between sh3500 - sh3600 but now it ranges from sh5,000 to sh5,300, according to a survey conducted by New Vision.

Ivan Tumwebaza a resident of Mutungo said he walked into a shop this morning (Monday) with sh2,000 to buy half a kilo of sugar and was left disappointed being told that he had to add sh500 to be able to purchase sugar. He decided not to buy.

Hadija Kyomuhangi a trader in Nakawa said the price of sugar has been going up since September.

She attributed the soaring prices to the high taxes imposed by the government and the festive season.

In 2011, a Kilog of sugar cost sh5, 000 and beyond and this was due to the economic crisis at a time but on average, the prices have been ranging from sh2, 500 to sh3, 000.

Ivan Ssenyonjo a wholesale retailer at Super Duuka said: "Some factories hide the sugar in stores with the intention to claim that that the sugar is out of stock or machinery breakdown to increase the prices," Ssenyonjo said.

Statistics from Uganda Sugar Manufacturers Association (USMA) indicate that, Uganda consumed about 350,000 metric tonnes in 2015 but it is expected to increase to 360,000 tonnes this year based on demand.

Last year, the country produced 418,882 tonnes of sugar of which 31,299 tonnes were for export.

The surplus the country produces is exported to Kenya, Rwanda and South Sudan. Uganda has a total of 23 registered sugar producing companies.