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Sugar Production Resumes, Easing Supply and Price Concerns in Tanzania
Photo: The Citizen
2026-07-21 15:50   Business   10

Sugar Production Resumes, Easing Supply and Price Concerns in Tanzania

Local sugar producers in Tanzania are gradually resuming operations after months of disruptions caused by heavy rains, maintenance delays, and technical challenges.

This has led to improved availability of sugar and stabilized prices, though earlier shortages pushed up costs to as high as Sh5,000 per kilogram in some areas.

The Tanzania Sugar Producers Association (TSPA) noted that the 2026 production season started late due to prolonged rainfall affecting harvesting and milling.

To address supply gaps, the government approved imports of 110,000 tonnes of sugar, with companies like Mohammed Enterprises Limited and Kagera Sugar receiving permits.The National Food Reserve Agency (NFRA) also contributed to mitigating shortages.

Kilombero Sugar Company resumed production on July 7, while Bakhresa Group and other major producers faced initial challenges in securing sugarcane supplies.Despite these efforts, actual sugar production remains below capacity at around 410,979 tonnes by April 2026.

The government is investing in expanding processing capacity through projects like Kilombero Sugar and Mkulazi Holding Company to reduce reliance on imports.Industry experts remain optimistic about rebuilding stocks as factories ramp up operations.

Full reading at The Citizen

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