By: Andrew Kareba
As East African countries continue to experience abnormal increase in sugar prices, negotiations between Rwanda commerce ministry and Kabuye Sugar factory have finally seen the price off sugar fall from Frw1200 to Frw800 per kilogram.
The price of sugar has now dropped to Rwf 800 a kilo as agreed by Kabuye Sugar works and Champion investment corporation (CHIC) after a severe sugar shortage causing an over 75% increase in the domestic price.
Kabuye Sugar Works (KSW) is not a major player neither in sugar supply nor in sugar pricing as imports overwhelmingly dominate, said Francois Kanimba.
Kanimba further said that, MINICOM keeps an eye on sugar importers and traders to prevent holding the available sugar and hike prices.
The prices have already stabilized from Rwf 1200 to Rwf 800 according to what the business community used to sell Rwf50, 000 a bag but now its Rwf 33, 500, says Mohammed Ntabahejeje the Secretary General of CHIC.
“We are dealing with business community with business license to supply sugar in villages but under conditions” says Ntabahejeje.
The Annual production of sugar by KSW is 10,500 tons a year while domestic consumption increases significantly to 40,000 tons a year and the remaining quantity is imported from EAC countries, says Gohil the General Manager of KSW.
“We don’t access KSW products”, we just see it passing by near our shops and is the cheapest compared to Sukari Halisiya Miwa from Tanzania which costs Rwf 21,000 a bag of 25kg and Lugazi Sugar Corporation from Uganda which costs Rwf 40,500 a bag of 50kg, says one of the retailers who did not want to mention her name.
Theogene Ntabahejeje is a retailer from Nyabihu District says, “We have been working in speculations due to high demand of sugar”.
I make a long journey from the Western Province, the Government and CHIC should offer the retailers purchase more than five bags of 50Kg.Ntabahejeje Says.
Marie Mujawimana works in stationery and has got a big family, says the government has saved my children, I am now happy for the regulation.
Minister said, they sent a waiver request to EAC sector council to import sugar outside EAC and COMESA countries at o% duty for the minimum period of six months as regional industries regain their footing.
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