Sugar shortage sends prices soaring

ZANZIBAR: SUGAR prices in Zanzibar have more than doubled the official retail price amid supply disruptions linked to delayed imports and suspected hoarding by some traders.

A Daily News survey found many shops with little or no sugar stocks, while those with supplies were charging up to 7,000/- per kilogramme, well above the official ceiling of 3,000/-.

Officials attribute the supply disruptions mainly to shipping delays caused by geopolitical tensions in the Middle East, while also investigating allegations that some traders are hoarding sugar to drive up prices.

Zanzibar imports more than 90 per cent of its sugar, mainly from India and Brazil, making the islands highly vulnerable to disruptions in global supply chains.

Production at the Mahonda Sugar Factory remains insufficient to meet domestic demand.

The supply disruptions are already taking a toll on small businesses that depend on sugar as a key raw material.

A Daily News visit to Darajani, Mwanakwerekwe and Mombasa markets found many shops with empty shelves, while those with stocks were charging sharply higher prices.

Small-scale traders, particularly food and beverage vendors, said the shortage had disrupted their operations and increased operating costs.

“We are facing a serious challenge. We now buy sugar at between 4,000/- and 8,000/- per kilogramme. Prices are high because the product is simply unavailable,” said juice vendor Mwanakombo Omar. Retailers said soaring wholesale prices had made it impossible to comply with the government’s recommended retail price.

“The government wants us to sell at 3,000/- per kilogramme, but we are buying at much higher prices. If I sell at that rate, I will incur losses. That’s why I’ve stopped selling sugar for now,” said one trader, who requested anonymity.

Traders said the wholesale price of a 50-kilogramme bag had risen from 130,000/- to between 180,000/- and 190,000/-, forcing retailers to raise prices to remain in business.

“This increase has made it impossible to sell at the recommended price without incurring losses,” said trader Juma Hassan.

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At Mwanakwerekwe Market, a juice vendor, Jane Michael said the shortage has reduced her production.

“I usually buy 50 kilogrammes for my juice business, but now sugar is scarce and sometimes unavailable,” she said.

Market Manager Shariff Ali Shariff confirmed that supplies remain low, disrupting trading activities, and urged the government to engage major suppliers to restore stable supplies while ensuring affordable prices.

Residents have also questioned whether the shortage is genuine or the result of price manipulation.

“We don’t know if this is a real shortage or a tactic by some traders to push prices up,” said Magomeni resident Salum Juma.

Importers, however, sought to reassure the public. Evergreen Company Chief Executive Officer Said Salum Halfan said the company has imported 1,080 tonnes of sugar, distributed at 130,000/- per 50-kilogramme bag, with another 4,000 tonnes expected to arrive soon.

Director of Trade Khamis Shauri said shipment delays, particularly from India, have contributed to the shortage, but the government is working to stabilise supplies through continued imports while Mahonda Sugar Factory continues production with a capacity of up to 5,000 tonnes per season.

Meanwhile, the Zanzibar Fair Competition Commission has warned traders against price manipulation, maintaining that the official retail price remains 3,000/- per kilogramme in Unguja and 3,200/- in Pemba, with violators facing legal action.

Authorities have also urged consumers to demand receipts to help enforce compliance.