PM wants sugar factories to meet domestic demand

 
Prime Minister Kassim Majaliwa has directed sugar factories in the country to increase production of the commodity so as to cover the present deficit.

 

According to him, the actual country demand is 420,000 metric tonnes per year while the four factories have the capacity of producing 300,000 metric tonnes, thus a deficit of 120,000 metric tonnes. 

 

The premier gave the directive on Monday in a meeting with the management of Kagera Sugar Company and Kagera regional leadership, stressing that the government will continue to restrict sugar imports to protect local producers.

 

“The government has banned sugar imports in order to ensure that local producers sell their stockpiled tonnes of the commodity,” he said.

 

The PM was in his second day of a tour in Kagera Region where he said that all local producers should meet their end of the bargain to cover the deficit as per recent agreement with the government.

“We need local factories to produce enough sugar and meet the demand as we have agreed, the aim is to restrict sugar imports which if allowed will affect local producers,” Majaliwa said.

 

The premier, however, commended the management of Kagera Sugar for the huge investment in sugar estates, procurement of machines and employing a large number of Tanzanians.

 

On his part the company’s Chief Executive Officer, Ash Rana, said they currently produce 60,000 metric tonnes but plan to produce 120,000 metric tonnes in the coming four years.

 

He noted that sugar production at the factory has been increasing annually whereas in 2011/2012 it produced 35,362 metric tonnes while in 2015/2016 production increased to 60,000 tonnes.

 

He, however, requested the government to reduce interest rates on loans taken for agriculture investments which is currently 20 percent, saying the rate is too high.

 

Rana  said that  plans are underway  to  improve and expand the factory  and they were in the final stages to access a loan worth  US$ 68 million out of which  US$ 10 million will be channeled to improving irrigation schemes and the remaining amount will be  used to improve the company’s infrastructure. Mid last month, President John Magufuli banned sugar imports to protect the local sugar industry, which for many years has been hit hard by the continued supply of cheap and mostly illegal sugar from abroad.

 

 The president said the country could not achieve its envisaged industrialisation targets if local factories were not protected from and empowered against such cheap imports.

 

Wednesday, March 16, 2016