Economy - Even as sugar imports start to arrive in the country, Ugandans have continued to pay expensively for the commodity. The government recently authorised the importation of sugar after Uganda faced a serious shortage that forced prices up to about Ush8,000 (about Sh4,640) from Ush2,600 (about Sh1,508) in April. According to a survey conducted by Daily Monitor, departmental stores are selling a kilogramme of the commodity for between Ush3,900 and Ush4,200 compared to between Ush2,990 and Ush3,300 per kilogramme last month.

Retailers in and around Kampala are selling a kilogramme for between Ush6,000 and Ush8,000.

Recently, Ms Amelia Kyambadde, the Minister of Trade, promised the country that the 'disturbing sugar situation' would nearly be no more after the companies cleared to bring in sugar had finalised their arrangements and had started importing the commodity.

She said: "The government is working with private companies to see that this sugar issue is solved. By the end of this month (August), there will be enough sugar in markets across the country."

However, according to media reports, the arrival of the imported sugar has not calmed the shortage with no relaxation in prices. Importers have cited the cost of bringing in the commodity as a major challenge for fixing prices.

The continued depreciation of the Ugandan Shilling and the escalating cost of fuel have acted as major challenges in bringing down the price of sugar.

The Shilling has since the beginning of this year depreciated by about 22 per cent whereas pump prices of fuel have increased from about Ush2,730 in January to Ush3,900 for every litre of petrol.

Thus, analysts have expressed pessimism about a return to normal prices of sugar even as imports begin to arrive.

Mr Jim Mwine, the chairman of Uganda Sugarcane Technologists Association, told Daily Monitor over the weekend that only increased and sustainable production by local firms would stabilise prices.

Nicholas Kalungi

The Citizen/20/09/2011