June 16, 2015
Sugaronline | http://goo.gl/451KQH
During the financial year 2014/15 the government issued permits for importation of over 100,000 metric tonnes of consumable sugar between March and May, this year, owing to shortage of the sweetener in the local market, the National Assembly heard, according to Tanzania's Daily News.
Deputy Minister for Agriculture, Food Security and Cooperatives, Godfrey Zambi, explained that the permits were issued for importation of 182,765 tonnes of industrial sugar between July 2014 and June, this year.
"The decision by the government to issue the permits and reduction of import duty on the commodity is aimed at curbing the shortage to ensure sugar is available in the market all the year round," he explained while responding to a principal question by Konde MP Khatib Saidi Haji (CUF).
In his question, the Konde legislator had wanted to know the amount of sugar imported to curb internal shortage and whether it translated into affordable prices to the final consumers.
The deputy minister explained that had it not been for the issuance of import permits and tax relief the consumers would have paid between TZS2,500 (US$1.14) and TZS3,000 per kilogramme, up from between TZS1,800 and TZS2,000 which was currently charged.
"Relief of import duty on imported sugar has helped stabilise the prices at between TZS1,800 and TZS2,000 per kilogramme during 2014/15," Zambi explained.
Sugar importers currently enjoy a tax relief of 50% in line with the East African Community (EAC)'s Common External Tariff (CET).
However, presenting budget estimates for 2015/16 in Dodoma last week, Finance Minister, Saada Mkuya Salum, announced new tax measures in which importers of the sweetener will now pay US$460 dollars per tonne, or 100% of the total value, from US$200 per tonne.
Local producers of sugar can only produce 300,000 tonnes of consumable sugar while demand stood at 420,000 tonnes per annum. None of the local industries produces industrial sugar and yet the demand stands at 170,000 tonnes per annum.
The country thus faces a shortage of 290,000 tonnes, of which 120,000 tonnes is consumable and 170,000 tonnes is for industrial use.
The deputy minister hinted that plans were underway to encourage the establishment of small and mediumsized factories to produce sugar in a bid to curb its shortage and provide a market for out-growers.
He also told the august House that the Bagamoyo-based Eco-Energy was set to start operations and thus improve local production of sugar. The project seeks to produce both sugar and electricity from molasses.