The Tanzanian sugar sector stands on the cusp of significant reforms as the government plans to present a proposal to amend the Sugar Industry Act of 2001 during the forthcoming budget session of Parliament. This proposed amendment aims to liberalize the sugar market, marking a departure from decades of government protectionism and allowing local manufacturers to compete with foreign companies.
During a meeting at the State House in Dar es Salaam on Thursday, Agriculture Minister Hussein Bashe unveiled the impending changes, emphasizing the urgent need to overhaul the industry to meet national demand effectively. Minister Bashe underscored that the reforms would challenge established players in the sugar sector by opening the market to foreign competition.
"In the upcoming budget session, I am proposing alterations to legislation aimed at opening up the sugar market. Domestic producers will engage in competition with international firms, and the government will offer incentives available domestically to support them," stated Mr. Bashe.
He stressed the importance of reducing reliance on protected entities while fostering healthy competition. The proposed amendments signal a shift toward greater market liberalization and aim to create a level playing field for all stakeholders.
Minister Bashe also addressed concerns regarding the current sugar deficit, likening it to challenges faced in 2017-2018. He emphasized the need for proactive measures and highlighted the government's decision to commence imports through the National Food Reserve Agency (NFRA) as a critical step to address the deficit.
Despite issuing permits for substantial imports, Minister Bashe noted significant shortfalls in actual imports, citing adverse weather conditions among the contributing factors. He reassured citizens of ongoing efforts to combat price manipulation and fraudulent practices within the industry.
The proposed reforms also aim to enhance distribution networks and combat hoarding practices that exacerbate price volatility. Factories will be mandated to establish depots across regions, and stringent measures will be introduced to monitor sugar distribution and pricing.
With sugar demand reaching 490,000 tonnes last year and a production target of 550,000 tonnes set for this year, the government remains proactive in addressing challenges and ensuring stability in the sugar market. Import permits for no less than 100,000 tonnes have been issued in anticipation of potential shortfalls due to adverse weather conditions forecasted by the Tanzania Meteorological Authority (TMA).