Sugar producers are engaging Zimbabwean authorities to ensure an even competitive playing field against cheap imports flooding the Zimbabwean market; Tongaat Hulett Chairman Dube says.
Dube says the cheap imports of sugar are originating from surplus producers who enjoy duty protection in their host countries.
“This (engagement) is also in an attempt to safeguard the health of the local population as some of the sugar imported is not Vitamin A fortifi ed, as required by law,” said Dube.
In May this year, the government suspended import duty on sugar and other basic commodities to improve people’s access to affordable products, in the face of price increases in Zimbabwe’s supermarkets.
Besides competition from imports, the sugar industry is anticipating more other challenges ahead.
The challenges are likely to emanate from high cost pressures on account of both local and global inflationary dynamics.
Another challenge for the sector is the risk associated with unexpected movements in the exchange rate; the exchange rate volatilities.
High cost of funding and supply chain bottlenecks are likely to result in pricing of local products diffi cult in the short to medium terms.
Sugar producers however see hope of expansion with Tugwi-Mukosi and Mtirikwi Dams close to full capacity.
Dube says, “It is also pleasing to note that the authorities are open to engagements with the industry on the key issues of duty-free imports of sugar and appropriate pricing models to ensure that the industry remains viable whilst protecting consumers.”
Leave a Reply