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The chairperson of Uganda Sugar Manufacturers’ Association, Mr Jim Kabeho, attributes the skyrocketing prices of sugar to the surge in fuel prices.
In May 2017, sugar prices hit a record high of Sh7,000 per kilogramme, up from Shs6,000 for packed and Shs4,600 for unpacked.

The rising fuel prices have pushed the cost of sugar, one of the highly-consumed home products, up, according to sellers who spoke to Daily Monitor.
Mr Rogers Nabikamba, who owns a wholesale shop in Jinja City, on Tuesday, said the cost of a 50kg bag of sugar has increased by at least Shs5,000.
“Previously, we were buying a 50kg bag of sugar at a factory price of Shs140,000, but it has increased to between Shs145,000 and Shs150,000, meaning we are reselling it at between Shs152,000 and Shs154,000,” he said.

Because of such changes, Ms Jane Muwabe, who owns a retail shop in Jinja City, said she is selling a kilogramme of unpacked sugar at Shs3,600, up from Shs3,300.
“I have no option but to increase [the price] in order to gain some profit,” she said.
At Biashara Supermarket on Main Street in Jinja City, a kilogramme of packed sugar, which used to sell at Shs3,900, now goes for Shs4,200.

Likewise, Ms Sophia Nakibuka, a consumer, expressed the hardship she goes through to access sugar because of the high prices.
“I am a single mother of four children, which is challenging, especially in times when prices of essential commodities such as sugar are hiked. Children can’t accept tea without sugar yet you have to save money for other essentials,” she said.
The chairperson of Uganda Sugar Manufacturers’ Association, Mr Jim Kabeho, attributed the skyrocketing prices of sugar to the surge in fuel prices.

Mr Kabeho said if the price of fuel goes down, the price of sugar will automatically reduce because it is a key determinant of prices of commodities.
“All the raw sugar cane is transported by trucks yet fuel prices are high. That is the main thing. When fuel prices go up, all our transport, materials and everything goes up,” he said.
Mr Kabeho noted that the increase in fuel prices compelled them (manufacturers of sugar) to also increase the purchase prices of sugarcane raw material to cater for the transport costs by farmers.

The spokesperson of Busoga Sugar Outgrowers’ Association, Mr Godfrey Naitema, said there is no need for millers to increase the prices of sugar because they [outgrowers] are the most affected by the fuel price increment.
“Although they (millers) increased the sugarcane purchase prices, it is still little; they should have at least increased it to between Shs120,000 and Shs150,000 per tonne, not to Shs102,000,” he said.
Last month, sugar millers in Busoga sub-region hiked sugarcane purchase prices, the first time in five years.

Background
In May 2017, sugar prices hit a record high of Sh7,000 per kilogramme, up from Shs6,000 for packed and Shs4,600 for unpacked.
This followed the closure of some major sugar millers, including Kakira Sugar Works and Lugazi Sugar, for routine maintenance, leaving only Kinyara Sugar Works Ltd on the market, leading to demand outstripping supply.