How sugar sabotage hikes price
DAR ES SALAAM: SOARING prices of sugar are partly caused by some wholesalers and retailers who have been hiking the price of sugar arbitrarily, Sugar Board of Tanzania (SBT) officers have said.
This malpractice of selling above the indicative price issued by the Sugar Board of Tanzania (SBT) has been noted in various regions including Dar es Salaam, Mwanza, Tabora and Dodoma. In Tabora about 14 retailers were caught recently by SBT Officer, Mr James Mwera, in an operation to net traders who are hiking sugar prices.
“We have found some of the retailers, selling a 25-kilogramme bag of sugar at 125,000/-, instead of 70,000/-, and worse enough without providing a receipt,” he told reporters in Tabora.
He said one kilogramme of sugar in some parts of Tabora was being sold at 5,000/-, instead of 3000/-, which is an indicative price by the board. He said the SBT would continue to crack down on all the culprits who undermine the situation by hiking the price of the sweeteners.
He said sugar factories in the country were recovering to normal production after disruption by the prolonged heavy rainfall.
Furthermore, in Dodoma Region, the SBT’s Senior Officer, Mr Fihiri Achi found some wholesalers hoarding consignment of sugar and selling it to end consumers at high prices.
“We caught them trading a 50kg bag of sugar at 200,000/-, instead of 140,000/-, pinpointed as an indicative price,” he told reporters, noting that all the culprits were arrested.
Earlier on January 23, SBT issued the indicative price for sugar in the wake of soaring prices caused by among others disruption in production by prolonged heavy rainfall. According to the indicative price the sugar at the Central Zone encompassing Dodoma, Singida and Tabora for the wholesalers is supported to be sold at around 2,650/- up to 2,800/-, while for the retailers from 2,800/- up to 3,000/-.
At the Eastern Zone including Dar es Salaam, Morogoro and Coast Region, the commodity should be sold at 2600/- to 2,800/-, for the wholesalers and 2,700 up to 3000/- for the retailers.
According to the indicative price, the average maximum price for a kilo of sugar across the country is 3,000/-. However, on the ground things go contrary for instance one kilogramme of sugar at Buguruni in Dar es Salaam is sold at around 4,300/- up to 4,600/-.
Reacting, Economist Professor Kitojo Wetengere based at the University of Arusha said what determines price is supply and demand.
He said currently the country faces the challenge of having few sugar suppliers. Prof Wetengere said the shortage can be navigated by increasing supply through intensive importation to meet the demand as the country’s local sugar factories struggle to recover to normal production. He said low sugar imports create a vacuum for wrongdoers to hoard the product and resale at high prices within a black market.
