Cosmas Butunyi
19 May 2008
Nairobi — Sugar industry players now want the government to extend its efforts in reforming the industry to sugar importation.
The chairman of the Sugar Campaign for Change lobby group, Mr Peter Kegode, said some of the individuals who were holding import licenses lacked the capacity to carry out the activity, making them vulnerable to use the licenses fraudulently.
"Since they are unable to import, they resort to trading in the licenses," he added.
Mr Kegode proposed the creation of a government agency to carry out sugar imports instead of relying on individuals.
This, he said, would benefit farmers and the government, besides having positive influences on the industry.
Hailed cancellation
Mr Kegode hailed the recent cancellation of the export licences by the minister noting that it would lead to growth in the sugar industry.
"Some of these exporters have gained competitive advantage over local products since they claim value added tax but the product does not leave the country," he added.
Last week, Agriculture minister, William Ruto, cancelled 16 export trade licences in a move that is expected to reduce consumer prices.
Mr Kegode noted that the country had a sugar deficit and it was therefore not necessary to export.
"The domestic sugar market has a shortfall and the government should look at the supplies with a view of increasing production," he said.
The constraints that prevent the country from meeting its sugar potential, he added, needed to be addressed.
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