Reports Leo Odera Omolo

REPORTS emerging from Tanzania say the government has banned the export of sugar the neighboring countries to protect to domestic stock.

The action is viewed of as part of testing its commitment to open trade in the region in other East African Community member states battle a bitter sugar deficit.

The government has already directed all regional and district authorities in border areas to ensure that no sugar is transported out of the country.

The Tanzania Sugar Board {TSB} which is the regulating authority said at the weekend that the shortage is due to smuggling was to blame for the sharp price increases by some areas as kilogram of sugar is retailing at between Tshs 2,200 {USD 1.35} and Tshs 2,500 {USD 1.54} compared with Tshs 1.500 {USD one} a few days ago.

In the neighboring Kenya the price of sugar rose to Kshs 200 {USD 2.2} per kilo as retailers took advantage of supply shortages to raise price of the commodity.

In Uganda and Burundi, a kilo of the commodity is gong for Ugshs 5,000 {USD 2.2} AND Ush 2000 {USD 1.64} respectively.

TSB is not advocating border closure but instead the government to take swift measure to address the mushrooming sugar smuggling into neighboring countries which is subjecting the country to massive revenue loss TSB Director General Mathew Kombe said.

“We know local traders have been exporting the commodity to various countries the deficit.”

The government said premium prices offered in neighboring have pushed up prices in some regions along the border on a retail basis.

Exports are expected to have pushed up prices

In some regions along the borders on a retail prices.Export as expected to seek export permits to other countries but many were doing so.

The local industries mainly production stands at 40,000 tomes against consumption of between 30,000 tones at 35,000 tones.

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