Dar es Salaam: The government has assured Tanzanians that the country will not face a sugar shortage this season, despite the temporary closure of several factories for routine maintenance. This is a marked change from previous years, when such closures led to sharp price hikes and widespread shortages, reported The Citizen.
Last year, during a similar period, sugar prices in some areas soared to as much as Sh10,000 per kilogramme due to a nationwide shortage. Today, sugar is selling for around Sh3,000 per kilogramme in most parts of the country.
Between March and early May 2023, sugar prices spiked amid declining supply. Even when factories resumed production in mid-June, supply remained limited. Matters worsened in October when El Niño rains disrupted sugarcane farming and halted production in several areas.
In response, the government scrapped the old policy that allowed sugar producers to import sugar during the off-season. Instead, the National Food Reserve Agency (NFRA) has now been tasked with importing and stockpiling sugar to ensure year-round availability and price stability.
This new policy was officially endorsed by Parliament on June 24, 2024, when Agriculture Minister Hussein Bashe presented the ministry’s Sh1.249 trillion budget for the 2024/25 financial year. Legislative changes were included in the Finance Bill 2024 to grant the NFRA the authority to carry out this role.
Mr Bashe explained that the goal is to prevent price surges during factory downtime, which usually occurs in the rainy season when sugarcane yields less sugar.
Sugar Board of Tanzania Director General, Prof Kenneth Bengesi, said in an interview with The Citizen that the country currently has 650,000 tonnes of sugar in storage, including a buffer stock meant to cover daily needs and any short-term supply gaps.
“NFRA is now fully responsible for sugar imports, a role previously held by factory owners and traders,” Prof Bengesi said. “This approach guarantees that sugar remains both available and affordable.”
He added that 150,000 tonnes of sugar have already been imported and are being stored in NFRA facilities as part of the country’s strategic reserve. The reserve is not released unless necessary and typically provides enough supply to cover two months, ensuring market stability.
Prof Bengesi said decisions about releasing the sugar are based on real-time market conditions. If local production is sufficient, the stock remains untouched and can be used in future emergencies.
Unlike last year, when floods damaged sugarcane plantations and interrupted production, this year’s weather has been more favourable. Most factories are currently shut for maintenance and are expected to restart operations in June. Kagera Sugar is the only facility still operating, though at reduced capacity due to localised rainfall.
“We’ve taken early steps this year to avoid a repeat of last season’s crisis,” Prof Bengesi said. “There is no reason for public concern.”
However, not everyone is satisfied with the current state of the market. Kilombero Sugar Company board chair Ami Mpungwe warned that local producers are struggling to sell their sugar due to an oversupply of imported sugar.
“There’s more imported sugar in the market than necessary, and it’s being sold duty-free and tax-free,” Mpungwe said. “This is making it hard for local producers to repay loans and is affecting their operations.”
As of March 31, 2025, sugar stock levels were reported as follows: TPC with 55,838 tonnes, Kagera Sugar with 40,544 tonnes, Kilombero with 45,996 tonnes, and Bagamoyo with 5,221 tonnes.
“With these figures, there’s no need for further sugar imports before the new production season begins,” Mpungwe said.
Bakhresa Group’s corporate affairs director, Hussein Sufiani, noted that the rainy season has had little impact on production this year.
The head of the NFRA was unavailable for comment.
