Sugar producers from Uganda have urged the government to protect their produce from the cheap imports due to which they are unable to clear surplus stock.
Uganda imports bonded sugar exempting tax with an aim of re-exporting it. The product is, however, being sold illegally in Uganda’s domestic market, informed the local millers in a meeting with the Kampala-based Parliament on Wednesday.
The importers are buying sugar from bonded warehouses in Uganda without waiting to be shipped to their countries. This indicated that the local industries are losing in the market and the stockpiles are building up.
According to the media report, mills say that the importers from neighboring South Sudan and Democratic Republic of Congo are buying the bonded sugar, instead of from local producers, because there’s no levy to pay.