Limited cane production has led to a rise in imports. FILE PHOTO | NMG Sugar imports in February grew by 88 per cent compared with the same period last year as the county shipped in more commodity to bridge local deficit following increased demand.
The Sugar Directorate said imports stood at 51,423 tonnes compared with 27,375 in the corresponding period last year. Local production grew a marginal five per cent in the period compared with last year following an increase in raw material.
"The growth in imports is attributed to increased table sugar imports in an attempt to bridge the rising domestic demand against declining local sugar production," said the directorate.
It notes that the continued closure of Mumias and Chemelil factories during the review period have had a huge impact on production. Mumias Sugar, which has been shut for over a year, used to be a major producer with the largest installed capacity. But the financial woes and poor management has seen the factory halt production. It is now under receivership.
Total sugar sales in the review period were 48,800 tonnes compared with 66,000 tonnes sold in a similar period last year. Most of the State-owned companies have been performing dismally due to lack of sufficient capital, ageing machinery, mismanagement and political interference. In the review period, only three of the five government owned firms were operational. Private millers continued to register impressive performance as they have installed new machines producing optimally and efficiently besides their private financial muscle.
The directorate is pushing for adoption of irrigation schemes as one of the ways of boosting cane production.
The ex-factory sugar prices increased by 11 per ent in February. However, enhanced imports of cheap commodity has seen the cost of the sweetener remain low in in the months compared with Sh3,868 a tonne in the same period last year, with a two kilo packet retailing at Sh210 at the moment from 230 in December.