The reduced sugar output across the sugar manufacturing sector in Uganda combined an appropriately 3060 metrics tons could be playing in the hands of the agents and retailers which had since seen an upward move in price per kilogram at approximately Ush.5000.

“When they make an order of say 300 bags, and they are able to secure say 100 bags in their mind, they’ll definitely increase and put a bigger markup because they’ll say when I go back next time, there will be no sugar. So, that speculation thing comes in but it’s natural with our people because whenever the supply is not high, or equal to what they are demanding, then they tend to increase the price.”

In words, we may not help the current supply constraint either. kakira sugar works one among the leading producers said he was shutting down his only single line currently in operation for annual maintenance within a matter of weeks.

”We are going into maintenance for about one week or so, and one of the mills that are operating right now, against the original capacity of two mills, and one mill that is operating is also going to be shut down for about seven days for synchronizing with the maintenance. So we will start in about eight to ten days, and then we will sum up everything. But we adhere to is that this late production is going to be prevalent in kakira for about six to eight weeks till the age of the cane grows to maturity.”, Koduvayur Eswar (Director Corporate Affairs Kakira Sugar).

With limited supply to retailers, local industry plays are also highlighting market development in the neighboring Kenya where increased actual demand for sugar was feared to be drawing down the Ugandan products.

“Today, any supply in Kenya today net taxes they’re selling the same 50Kg bag at 66 dollars. I repeat kakira’s price net tax is 46 dollars a bag of 50Kg today, Kenyan millers net taxes they’re charging 65 dollars today. we are still cheaper by almost 20 dollars per bag that’s almost 400 dollars per ton”, Raju Sareen (Head of marketing Kakira Sugar Limited).

According to the Uganda’s sugar manufacturers association, there are at least 13 sugar factories operating across Uganda.