(4 minutes read)
· The Kenyan Agriculture ministry has banned sugar imports with immediate effect, and suspended all trading licenses in order to curb the influx of cheap sugar in the market, which has impacted negatively on farmers.
· Agriculture Cabinet Secretary Peter Munya said the imports have made local sugar mills uncompetitive and many of them are struggling to survive.
· There is an influx of illegal imports, especially through the Busia, (Uganda) border as the unscrupulous businessmen took advantage of curfew hours.
The Kenyan Agriculture ministry has banned sugar imports withimmediate effect, and suspended all trading licenses in order to curb the influx of cheap sugar in the market, which has impacted negatively on farmers.
Agriculture Cabinet Secretary Peter Munya said the imports have made local sugar mills uncompetitive and many of them are struggling to survive. There is an influx of illegal imports, especially through the Busia, (Uganda) border as the unscrupulous businessmen took advantage of curfew hours. The Kenyan government has suspended all brown (table) sugar imports into the country with immediate effect and also pre-shipment approvals and extension of all sugar import permits until further notice.
Ex-factory prices of brown sugar for the mills remain at Sh85,260 for a tonne compared with the CIF price of Sh60,117 for the same quantity. This explains why local sugar is struggling in the market against the imports. He said the country may soon be faced with a sugar glut due to the increased importation that would eventually lead to the collapse of the industry. Kenya is allowed to import 350,000 tonnes from the Common Market for Eastern and Southern Africa to fill the deficit. However, stopping imports is likely to result in high cost of the commodity in the domestic market.
