Govt Stops Sugar Imports From Countries Outside COMESA & EAC : Kenya
Kenya’s Ministry of Agriculture has halted sugar imports from countries outside the COMESA and EAC regions due to a projected increase in local sugar production, expected to surpass 800,000 tonnes in 2024. Agriculture CS Andrew Karanja noted that previous imports were necessary due to low domestic output, but improved production and lower sugar prices have reduced the need for further imports.
The Ministry of Agriculture on Tuesday announced the government’s decision to halt sugar importation from countries outside the Common Market for Eastern and Southern Africa (COMESA) and the East African Community (EAC).
In his announcement, Agriculture Cabinet Secretary Andrew Karanja attributed the decision to the projected increase in sugar production by local companies which diminished the need to import more sugar.
According to Karanja, sugar production by local firms in 2024 was projected to surpass the 800,000-tonne benchmark target.
The CS noted that the country initially allowed the importation of sugar from countries outside COMESA and EAC due to low production of the commodity by local firms between 2021 and 2023.
Between 2021 and 2023, the country produced an average of 700,000 tones of sugar annually which the ministry noted was way below the annual consumption of 950,000 tones.
The low production led to a sudden hike in sugar prices, a situation that forced the government to intervene.
In its intervention, the government issued a permit allowing the importation of sugar from countries outside the two trade blocs. The permit was to expire in February this year but was extended.
“2023 was an exceptional year marked by a severe drought at the start, which led to reduced sugar output and necessitated substantial imports to cover the shortfall,” CS Karanja revealed.
“This year, with improved local production leading to lower sugar prices, the import window for countries outside COMESA and EAC was not extended.”
Additionally, the Ministry of Agriculture revealed the decision to halt sugar imports was due to a surge in sugar smuggling through Kenyan borders.
“There are challenges with sugar smuggling through porous borders, which security agencies are addressing. Kenya remains committed to adhering to the free trade protocols outlined in existing treaties,” CS Karanja stated.
“While sugar imports from these regions continue under existing trade protocols, the volumes have been lower due to unattractive low prices,” he added.
Source Link : https://www.kenyans.co.ke/news/104282-govt-announces-stoppage-sugar-imports-countries-outside-comesa-eac-trade-blocs
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