Museveni says NRM firms to supply sugar
President Museveni
What you need to know:
In what looks like a change in position, the head of state now blames the rise in sugar prices on greedy and unscrupulous traders and says firms loyal to the ruling party will step in to help.
President Museveni has, in what appears to be a shift in position, blamed the current spike in sugar prices on profiteering among greedy, unscrupulous traders.
In a message issued shortly before he left for a two-day private visit to India yesterday morning, Mr Museveni said he would “encourage NRM companies to distribute sugar without extorting money” from buyers, as a measure to deal with the current sugar crisis in the country.
“When demand goes up they exploit the public. A kilo of sugar at factory price is still Shs2,800, but I hear some traders are charging as high as Shs8,000. Why?” asked the President, adding, “This is greed of the business people.”
President Museveni’s latest stand appears at variance to earlier public comments he made blaming rising sugar prices on inadequate local sugar production. That position led President Museveni to resurrect attempts, defeated earlier in 2007, to give away part of Mabira forest reserve to Mehta Group to grow more sugarcane and increase their production.
It was also not immediately clear what the President meant by “NRM companies” since the ruling party’s trading vehicle, Danze Ltd., folded unceremoniously over a decade ago.
Information Minister Karooro Okurut declined to comment when contacted and referred this newspaper to Trade Minister Amelia Kyambadde who was also unavailable for comment.
NRM alternative
But the President’s press secretary, Mr Tamale Mirundi, said Mr Museveni is trying to reach out to “companies aligned” to the ruling party because the sugar crisis is “political.”
“It is intended to incite the population against the President especially those who are selling at high prices,” he said. “Of course the government can mobilise its allies. What the president is saying, is look we know there are NRM people who can say let us solve this problem. All he is saying is that NRM has alternatives. This issue is solvable.”
But private sector players are opposed to the move to control the sugar trade.
“This is a free economy,” said Mr Jim Mwine, chairman of the Uganda Sugar Cane Technologists Association. “People will sell at market prices.”
Mr Issa Ssekito, publicist of Kampala City Traders Association, accused Mr Museveni of compounding the crisis by allowing Kakira Sugar Works to control more than half the entire quota of tax-free sugar imported into the country last month..
