Overview:
But according to the factory management, they have failed to find local market for the white sugar, which has been severely affected by the influx of imported white sugar.
The Kinyara Industrial White Sugar Factory is stuck with 5,000 metric tonnes of white industrial sugar.
Kinyara Industrial White Sugar Factory, which has daily production capacity of 250 to 270 metric tonnes, was commissioned in February 2022 by President Museveni.
But according to the factory management, they have failed to find local market for the white sugar, which has been severely affected by the influx of imported white sugar.
Industrial sugar plays a vital role in the production of various products, including soft drinks, baked goods, confectioneries, and pharmaceuticals.
Mr. Aldon Walukamba, the factory communications manager, said the local market is flooded with imported white sugar.
“The reason why we have all this stockpile is that we lack a market locally due to the importation of white sugar in the country,” Mr. Walukamba stated.
The factory has been exporting its white sugar to various countries, including South Africa, Belgium, Kenya, and Southern Sudan.
However, even the international market witnessed a decrease in demand for white industrial sugar, adding to the factory’s predicament.
During the factory’s commissioning in February last year in February, President Museveni highlighted the importance of boosting domestic production to reduce the country’s dependence on imported refined sugar.
He emphasized that Uganda had been losing US$ 50 million annually due to imports, which could be replaced by locally produced sugar.
In response to the crisis, Kinyara Sugar Factory last week engaged a six-member committee team from the Ministry of Finance during their recent tour of the facility.
The committee was apprised of the issue of stockpiled white industrial sugar, and they promised to escalate it to higher authorities in the Ministry of Finance for swift consideration.
Recognizing the urgency of government intervention, Mr. Walukamba expressed hope that authorities would take prompt action.
To protect the domestic sugar industry from further harm and support its growth, the management of Kinyara Sugar Factory has appealed to the government to implement an import duty tax on foreign white sugar. This move aims to discourage excessive imports that are currently flooding the market and suppressing the demand for locally produced sugar.
“We urge the government to implement an import duty tax; we await the Ministry of Finance’s response,” Mr. Walukamba said.