Ugandans must be particularly surprised at the leap in the price of sugar. It went up by 36% from August to September. The Ministry of Trade says the slight increase in sugar prices has nothing to do with production capacity.
Currently a kilogram of sugar goes for around 3,000 shillings up from 2500 shillings a month ago. Retailers have to pay Shs30,000 more for a 50 Kg bag of sugar whose price scaled up from Shs90,000 to Shs120,000.
The Commissioner Bilateral Trade Cyprian Batala says Uganda’s sugar production capacity stands at 420,000 tons, consuming 300,000 metric tons annually with a surplus of 100,000 tons of sugar.
But Uganda sends more than 70,299 tonnes of its sugar to Kenya and the greedy local sugar barons want full access to Kenyan market- based on the East African Community’s free market rule.
The Trade Minister Amelia Kyambadde says companies are profiteering, something the traders deny.
“I suspect they might be making profits of maybe 40%,” she says.
Christmas and the general festive season is here so brace yourselves for worse because there are likely be more price rises to come.