The Chairman KACITA Everest Kayondo says Mabira will not be the solution to the sugar scarcity, adding that plantations of sugarcanes should be done across the country.

Kayondo has advised the President and Government to change the law that governs the sugar industry to allow many investors into the market and also permit the importation of sugar into the country.

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According to Nuwagaba, the economists warned of severe long term effects arising from this policy but government 20 years ago chose to continue with privatisation.

He told a public lecture on economic transformation in Kampala that the current economic crisis in the country is as a result of what he termed as a rotten foundation of Neo-liberalization adopted by government which in turn has now crippled the economy.

He says the government was warned against putting everything on market but paid deaf ears to the advise by economists.

Prof. Nuwagaba says the NRM government should not to bother anybody seeking for advice unless they change the economic policy.

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Sugarcane plantation

Speaking to journalists at Uganda Journalist Association (UJA) offices in Kampala, the chairman of the association, Mwine Jim Kabeho says, changes in climate in number one producing countries like Brazil, instabilities in countries around Uganda among others have fueled the situation.

He also pins retailers and wholesalers for being behind the current sugar prices hike and shortages but maintains that government’s action of waiving import tax on sugar will not affect local producers unless it exceeds a year.

Mwine says all sugar producers have not increasing their factory price which has been prevailing for over five months now.

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MPs say fuel is the main cause of high prices that the country is currently experiencing.

They want government to avail Parliament with a list of importers who will be allowed to import sugar without paying taxes.

They have also advised government to look at other commodities like soap and salt whose prices have also gone up.

This comes after the government resolved to scrap taxes on sugar and also liberalised the importation of sugar, scrapping all taxes on imported sugar.

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Lawmakers including Theodore Sekikubo, Vicent Kyamadidi, Wilfred Nuwagaba, Mohammed  Nsereko and Henry Musasizi say that scrapping off sugar is not enough  to rescue Ugandans from the current crisis.

The criticisms come only a day after President Museveni meet with the cabinet over the economic situation in the country.

Lwemiyaga County Member of Parliament Theodore Sekikubo says that though the gesture is welcome, government need to take serious and sustainable economic strategies to reduce the cost of living for the ordinary poor Ugandan.

Members suggested that there should a holistic approach to the economic provide that includes reduction of taxes on fuel which determine prices of other commodities.

Rwampara County Member of Parliament Vincent Kyamadidi said that government must also refocus on its expenditure patterns which have also drained the country’s economy.

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Addressing reporters today in Kampala, Omach states that they will keep a close watch on how prices for sugar will move but notes that the current high sugar price has been as a result of low local production with most of the consumed sugar now coming from overseas and highly taxed.

But the minister notes that even when they have slashed imported taxes on sugar by100%, this might not directly cause change in sugar prices at retail level for the local man.

He also adds that in the cabinet meeting, they resolved to revitalize the economy by cutting government expenditure, injecting more in the fish, agriculture and production sectors of Uganda.

 The junior finance minister also confirms to the nation that Uganda’s economy is healthy.

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The call comes following announcement by government to reduce taxes on sugar imports by 100%.

Addressing journalists at Parliament today, the Kampala Central MP, Nsereko Mohammed said it is not enough to cut taxes but this should be extended to other commodities such as fuel and salt.

Lwemiyaga County MP, Theodore Sekikuubo also called on government to break the monopoly of sugar manufacturing companies, which may use the scarcity to sell their products at exorbitant prices.

Ssekikubo says the rural population will continue to suffer the effects of the hard economic times more unless government comes out with lasting solutions to curb the running inflation.

The State Minister of Finance, Fred Omach earlier today announced the government was waiving all taxes on sugar imports in a move expected to ease the current shortage as some of the local manufacturers solve their productions shortfalls.

Omach also announced that government is freezing purchase of vehicles with a few exceptions, as a way of checking expenditure.

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The CBR rate is a tool used by central bank to control inflation but the governor says he will continue to increase the rate depending on the inflation rates prevailing in the country.

The rates are also intended to prevent the current high food price rate inflation from feeding through into higher inflation for non food items by curbing the growth of aggregate demand and hence spending on goods and services.

Last month the central bank set the CBR rate at 13% which the bank anticipated to work as one of the monetary tools to control the crisis in Uganda’s economy witnessing the highest inflation ever at 18%.

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Food stuffs in Nakasero Market Kampala Uganda

The country has been hit by the acute sugar shortage with the price of a kilogram to have increased more than doubling since May this year.

The retail price now stands at between 5000 to 6000 shillings in the different stoles while at some supermarkets the only available sugar is being fought for.

The government has often said the shortage is blamed on inadequate production and now the traders are calling on government support to encourage the importation of more sugar to avoid sugar scarcity in the country.
They say that sugar prices are likely to go as higher as 8000 shillings per kilogram if no urgent innervations are taken by the government.

Following this economic crisis in the country, President Yoweri Museveni has called a crisis cabinet meeting on Thursday to address the current economic situation with the sugar crisis expected to be on the agenda.
By Mugisa Isaac Mathias

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Food stuffs in Nakasero Market Kampala Uganda

Addressing a news conference in Kampala, the group’s chairman Mulwanyi Taminwa said the demonstrations that will kick off on Thursday next week is meant to show their discontent over government alleged failure to address key issues affecting their economy.

Taminwa says the high cost of commodity and fuel prices, the depreciation of the shillings against the US dollar and increased power load shading which he says affecting production by local manufactures.

He says they intend to carry on with the social and civil disobedience demonstrations until government takes appropriate action.

However the police deputy spokes person Vincent Sekate says they are not aware of such plans advising them to seek police clearance for any of their planned activities.

The Bank of Uganda has in the past made several innervations before to help to strengthen the shillings against the major foreign currencies but the impact of such action have so far been minimal.

By Mugisa Isaac Mathias

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