Across major markets in Eastern and Southern Africa, stable sugar prices were reported by Kulea. However, Kenya and Uganda may experience price increases due to ongoing rains hampering sugarcane harvesting and transportation. Conversely, Tanzania could see further price declines with increased imports, particularly from Uganda, where sugars into Kigali are cheaper than world market imports via Dar es Salaam or Mombasa.
Recent price increases in Nairobi and Mombasa suggest a positive import margin for re-bagged Brazilian sugar from Indian ports, indicating market dynamics favoring imports. Port activities reveal no significant sugar shipments for other East African Community countries, except for a vessel loaded with refined sugar destined for Sudan.
In Kenya, the government's decision to extend the import period for duty-free sugar from the world market has raised concerns among sugar millers and farmers, who fear it will undermine local production. Sugarcane farmers have also sought legal intervention to revoke the recent reduction in cane prices, arguing for better consultation and opposing measures that could further lower prices.
In Uganda, Kakira Sugar Limited anticipates low production this year due to cane shortages, highlighting the need for measures to control cane poaching and stabilize market supplies.
Overall, the stable prices in Eastern and Southern Africa reflect the complex interplay of domestic production, regional trade, and global market forces, shaping the sugar industry's dynamics in the region.
Source Kulea.africa