Tanzania vows no sugar shortage this year

Last year, the situation was so dire that in some areas a kilogramme of sugar fetched up to Sh10,000, prompting the government to act decisively. Currently, it retails for about Sh3,000 in most areas.

From March to early May, prices spiked amid nationwide shortages. Even when production resumed in mid-June, supplies remained constrained for several months.

To make matters worse, the El Niño rains hit in October 2023, further disrupting sugarcane farming and halting production in several areas.

That situation prompted the government to drop a previous arrangement that allowed sugar producers to import the commodity during off seasons.

Instead, the National Food Reserve Agency (NFRA) will now be responsible for importing and stockpiling sugar to ensure a stable supply and curb recurrent price hikes.

Parliament endorsed the proposal on June 24, 2024, following its presentation by Agriculture minister Hussein Bashe while tabling the ministry’s Sh1.249 trillion budget for the 2024/25 financial year.

The new arrangement required amendments to the legislation governing the NFRA and has been included in the Finance Bill 2024.

According to Mr Bashe, the decision aims to prevent the sharp price spikes that typically occur when factories temporarily shut down, usually during the rainy season when sugarcane’s sucrose content falls.

Early last year, Tanzania experienced a severe sugar shortage that saw prices surge to as high as Sh10,000 per kilogramme in some parts of the country, up from the usual range of Sh2,600 to Sh3,000.

Sugar Board of Tanzania (SBT) director general Kenneth Bengesi said in an exclusive interview with The Citizen the country currently has 650,000 tonnes of sugar in stock.

He explained that the figure includes a buffer stock designed to meet daily consumption needs and cushion against any temporary shortfalls.

“NFRA is playing a bigger role this time. It now has the mandate to import sugar when necessary, similar to the powers previously granted to factory owners and traders,” said Prof Bengesi.

“This shift ensures sugar remains available and affordable throughout the year,” he added, revealing that the government has already approved the importation of 150,000 tonnes of sugar, which is being stored in NFRA warehouses.

Prof Bengesi noted that although the country does import small quantities to supplement local production, the current stock is sufficient to meet national demand.

He said the NFRA’s buffer stock is not immediately released into the market but is instead held as a strategic reserve.

“In times of shortage, the sugar is gradually released—typically enough to cover two months—to stabilise supply and prices.”

Prof Bengesi clarified that the decision to release sugar from storage is based on real-time market assessments.

“If local production suffices, the reserve remains untouched and can be deployed during future emergencies,” he said.

Unlike last year, when heavy rainfall damaged sugarcane plantations and disrupted factory operations, the current season has been relatively smooth.

“Most factories are temporarily closed for maintenance and are expected to resume operations in June. Only Kagera Sugar remains operational, albeit at reduced capacity due to localised rainfall,” Prof Bengesi said.

He added that the government took proactive steps this year to avoid a repeat of the 2022/23 crisis, when delays in sugar imports resulted in severe shortages and public outcry.

“Thanks to reforms this year, we are in a much better position,” Prof Bengesi said, assuring the public that there is no cause for alarm.

However, Kilombero Sugar Company board chair Ami Mpungwe said local sugar industries are currently struggling to find a market for their sugar due to an influx of imported sugar.

“There is a flood of imported sugar in the market well beyond the required amount to fill the local supply gap and it is duty-free and tax-exempt,” he said.

Mr Mpungwe added that industries are now finding it difficult to repay loans, which is adversely affecting their operations.

He said stock position as of March 31, 2025 TPC had 55,838, Kagera Sugar 40,544, Kilombero 45,996, Bagamoyo 5,221.

“So no need to import any more gap sugar before the start of the new season,” he noted.

Bakhresa Group corporate affairs director Hussein Sufiani said these are the rainy seasons, but they have not impacted sugar production.

Reached for comment, the head of the NFRA said he was indisposed and thus unable to comment.