REAL production costs of sugar are being worked out to regulate prices and ensure that the consumer accesses the commodity at a fair price, the Sugar Board of Tanzania (SBT) said yesterday.

SBT director general Prof Kenneth Bengesi said at a press conference that the scarcity caused by insufficient sugar in shops led to increased prices, a burden to most consumers.

“Earlier producers had a stance that there was no need for importing sugar because the sugar produced locally was enough and this was the reason they did not import even after receiving import licenses,” he explained.

He said the government used the Food Security Act which allows importation of food during emergencies to import sugar, a move intended to avert the scarcity of the commodity.

The government took various steps to move out from the crisis that touched off a public outcry due to rising prices, reaching upwards of 7000/- per kilogramme in some places, he stated, explaining that the government took measures to alleviate the suffering as it is within its power to end the crisis.

 The board will be analysing production costs and producers will be mandated by the law to submit production costs, in view of the need to protect the last consumer, he said.

Performance contracts with producers will be used to test production capabilities of local industries, taking into consideration development plans in the pipeline, he said, acknowledging that sugar availability and pricing is a sensitive issue.

Earlier this week, the Tanzania Sugar Producers Association (TSPA) disputed the view that the local sugar sector was inefficient, airing discontent over the parliamentary debate and among stakeholders on the issue as eschewing producers despite being key stakeholders.

The new debate follows the government’s move to use the NFRA to procure and store sugar to address the scarcity of the produce, a periodic pain in the neck.

SBT often asks sugar producers to submit production estimates to the board in the wake of reports by the Tanzania Meteorological Authority (TMA) where El Nino induced rainfall affected production late last year.

Sugar firms projected 453,043 to 483,600 metric tons during the following season, failing to reach much of that projection, compelling the decision to hand importation to the NFRA, he said.

He even hinted on the need to relieve producers from the burden of performing multiple tasks and instead concentrate on production to increase capacity.

“What the government is doing is for the interest of consumers. We are protecting consumers so that they buy the commodity at a fair price but also stabilise the sector,” he added.