{"id":47917,"date":"2023-04-19T22:28:16","date_gmt":"2023-04-19T22:28:16","guid":{"rendered":"https:\/\/www.africa-press.net\/uganda\/all-news\/kinyara-works-stuck-with-costly-industrial-sugar"},"modified":"2023-04-19T22:40:43","modified_gmt":"2023-04-19T22:40:43","slug":"kinyara-works-stuck-with-costly-industrial-sugar","status":"publish","type":"post","link":"https:\/\/www.africa-press.net\/uganda\/all-news\/kinyara-works-stuck-with-costly-industrial-sugar","title":{"rendered":"Kinyara works stuck with ‘costly’ industrial sugar"},"content":{"rendered":"

Africa-Press – Uganda. <\/strong><\/span>Kinyara Sugar Works has said it has experienced lower than expected demand for industrial sugar, a year after President Museveni commissioned its manufacturing plant in Masindi.<\/p>\n

\u201cI have the stock but no buyers,\u201d Mr Ramalingham Ravi, the Kinyara Sugar managing director told Monitor, adding that despite lower than expected demand Kinyara is increasing production capacity from 60,000 tonnes to 75,000 tonnes annually.<\/p>\n

Data from Uganda Sugar Manufacturers Association indicates that GM Sugar is also producing 13,000 metric tonnes while Mayuge Sugar expected to add 30,000 tonnes.<\/p>\n

However, some off-takers have cited high prices, inconsistency in quality and volumes as some of the reasons that have forced them to depend on imports. \u201cThe demand for industrial sugar reached 130,000 tonnes last year, but only 35,000 tonnes was available for off-takers,\u201d Mr Paddy Mulamirah, the Crown Beverages chief executive said in an interview, adding: \u201cSometimes the quality is good and other times it\u2019s bad.\u201d<\/p>\n

However, Mr Wilberforce Mubiru, the Uganda Sugar Manufacturers Association general secretary, challenged concerns raised on quality, noting that Uganda\u2019s white sugar manufacturers source their machines from the same sources.<\/p>\n

Additionally, he said, the high cost results from the cost of sugarcane, which now cost between Shs180,000 and Shs190,000 per tonne.<\/p>\n

\u201cThis is a cycle of high sugarcane prices. We expect the prices of sugarcane to drop next year when production increases,\u201d he said.<\/p>\n

Comparatively, details indicate that locally produced industrial sugar costs Shs3.8m ($1,015) per tonne compared to Shs3.37m ($900) when imported.<\/p>\n

Uganda negotiated at the East African Community Secretariat for duty reduction to enable ongoing production of finished goods that use industrial sugar as raw material, in the absence of locally produced industrial sugar.<\/p>\n

Mr Simon Kaheru, the East African Business Council vice chairman, said in an interview that they had held discussions with off-takers, producers, and potential producers of industrial sugar as well as government to address the concerns.<\/p>\n

\u201cUganda is the focus because it is the only country in the region producing industrial sugar, and there was a point when the duty remission was removed. We had to arrange dialogue because that caused disruptions to production,\u201d he said, noting that: \u201cNow that there is sugar available locally, removal of the tax remission is certainly welcome but the changes need to take into account the availability of the right quantity and quality .\u201d<\/p>\n

Through EABC intervention, government has agreed to a hybrid arrangement where imported industrial sugar continues to come in as producers build local capacity.<\/p>\n

Mr Patrick Ocailap, the deputy secretary to the Treasury and deputy permanent secretary in the Ministry of Finance, said the production of industrial sugar locally answers government\u2019s push for import substitution, creation of jobs, and industrial linkages.<\/p>\n

\u201cIndustrial sugar manufacturers should be looked at positively so that we find out what is hindering them to produce,\u201d he said.<\/p>\n

Six licensed companies <\/b><\/p>\n

By last year, the Trade ministry had licensed six other companies to produce refined industrial sugar.<\/p>\n

For More News And Analysis About Uganda<\/a> Follow Africa-Press<\/a><\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"

Africa-Press – Uganda. Kinyara Sugar Works has said it has experienced lower than expected demand for industrial sugar, a year after President Museveni commissioned its manufacturing plant in Masindi. \u201cI have the stock but no buyers,\u201d Mr Ramalingham Ravi, the Kinyara Sugar managing director told Monitor, adding that despite lower than expected demand Kinyara is […]<\/p>\n","protected":false},"author":84,"featured_media":47916,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[2,5],"tags":[233,240,234],"class_list":["post-47917","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-all-news","category-economy","tag-africa-press","tag-africa-press-uganda","tag-uganda"],"yoast_head":"\nKinyara works stuck with 'costly' industrial sugar - Uganda<\/title>\n<meta name=\"description\" content=\"Kinyara Sugar Works has said it has experienced lower than expected demand for industrial sugar, a year after President ...\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.africa-press.net\/uganda\/all-news\/kinyara-works-stuck-with-costly-industrial-sugar\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Kinyara works stuck with 'costly' industrial sugar\" \/>\n<meta property=\"og:description\" content=\"Kinyara Sugar Works has said it has experienced lower than expected demand for industrial sugar, a year after President ...\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.africa-press.net\/uganda\/all-news\/kinyara-works-stuck-with-costly-industrial-sugar\" \/>\n<meta property=\"og:site_name\" content=\"Uganda\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/AfricaPressTunisiaa\" \/>\n<meta property=\"article:published_time\" content=\"2023-04-19T22:28:16+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2023-04-19T22:40:43+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/static.africa-press.net\/uganda\/sites\/34\/2023\/04\/postQueueImg_1681927105.40.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"720\" \/>\n\t<meta property=\"og:image:height\" content=\"480\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"cfeditoren\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"cfeditoren\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"2 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\/\/www.africa-press.net\/uganda\/all-news\/kinyara-works-stuck-with-costly-industrial-sugar#article\",\"isPartOf\":{\"@id\":\"https:\/\/www.africa-press.net\/uganda\/all-news\/kinyara-works-stuck-with-costly-industrial-sugar\"},\"author\":{\"name\":\"cfeditoren\",\"@id\":\"https:\/\/www.africa-press.net\/uganda\/#\/schema\/person\/068c7ab4e9634ae78ec5d54ec46598bb\"},\"headline\":\"Kinyara works stuck with ‘costly’ industrial sugar\",\"datePublished\":\"2023-04-19T22:28:16+00:00\",\"dateModified\":\"2023-04-19T22:40:43+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\/\/www.africa-press.net\/uganda\/all-news\/kinyara-works-stuck-with-costly-industrial-sugar\"},\"wordCount\":502,\"commentCount\":0,\"image\":{\"@id\":\"https:\/\/www.africa-press.net\/uganda\/all-news\/kinyara-works-stuck-with-costly-industrial-sugar#primaryimage\"},\"thumbnailUrl\":\"https:\/\/static.africa-press.net\/uganda\/sites\/34\/2023\/04\/postQueueImg_1681927105.40.jpg\",\"keywords\":[\"Africa Press\",\"Africa Press-Uganda\",\"uganda\"],\"articleSection\":[\"all news\",\"economy\"],\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"CommentAction\",\"name\":\"Comment\",\"target\":[\"https:\/\/www.africa-press.net\/uganda\/all-news\/kinyara-works-stuck-with-costly-industrial-sugar#respond\"]}]},{\"@type\":\"WebPage\",\"@id\":\"https:\/\/www.africa-press.net\/uganda\/all-news\/kinyara-works-stuck-with-costly-industrial-sugar\",\"url\":\"https:\/\/www.africa-press.net\/uganda\/all-news\/kinyara-works-stuck-with-costly-industrial-sugar\",\"name\":\"Kinyara works stuck with 'costly' industrial sugar - 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