Sugar is among a list of commodities with escalating prices due to shortage of supply in Uganda according to a report by the Daily Monitor.
Sugarcane scarcity has led to a low production of sugar which has a very high demand thus the high prices according to the Jim Kabeho, the chairpseron of Uganda Sugar Manufacturers Association.
“Sugarcane contributes 80 per cent as input for sugar but due many sugar mills in Busoga sub-region, the demand for sugarcane has increased because they are all competing for the sugarcane from the same outgrowers,’’ Mr Kabeho disclosed.
Uganda has produced 450,000 tonnes of sugar this year compared to the annual production of 500,000 tonnes.
“Increased regional demands for sugar and low production have pushed Uganda’s sugar price up because we export 25 per cent of our sugar to countries such as Kenya, Congo, Rwanda, and South Sudan,” Mr Kabeho said.
Kabeho added that high commodity prices and the depreciation of the Ugandan shilling against the dollar are some of the factors that have led to increase in sugar prices.
With the upcoming Christmas festivities traders are stocking up most of the commodities to be sold at a higher price.