TANZANIA IN A MOVE TO INTRODUCE SUGAR PROCUREMENT ENTITY

In a move to control the amount of sugar imported into the country, the government has announced plans to establish a sugar procurement entity beginning next financial year, and will involve local sugar producers and importers of the commodity.

According to Sugar Board of Tanzania (SBT) Director General, Henry Semwaza, the government was in a process of reviewing regulations of importing sugar for direct consumption and industrial uses. The set regulations will ensure the entity imports sugar in bulk procurement or by way of a special bid as it is in other sectors such as oil when it is required.

“We started the process last year and the government is working around the clock to ensure the system is in place by 2014/2015,” he said.

He explained that sugar would be imported in bulk by a consortium that would be made up of producers and few traders.

Mr. Semwaza said discussions were going on between groups that would take part in the arrangement. That will involve finding a registered name for the consortium that will be limited by guarantee and regulated by SBT.

“The company which will be limited by guarantee will only be importing sugar once or twice annually when local producers are off season thereby controlling the smuggling of sugar into the country and protect the local market,” he said.

“This will strengthen a ban on illegal means of importing sugar also to ensure countries that use our ports in importing sugar do not illegally sell it on the Tanzanian market while it is on transit to their countries,” he said.

The consortium will regulate the whole system of sugar supply in the country as well as ban hoarders of sugar to cause an artificial shortage and will also mobilize investments to increase domestic production that will satisfy the demand and bring surplus.