Kampala — Traders in Uganda are worried that sugar prices may shoot up again similar to last year's.
Ms. Khadijah Kasirye a retailer at Kasubi, a Kampala suburb, explained that by the end of last week a 50 kg bag of sugar was sold at Ush150,000 ($60), and with in a few days, the price went up to Ush 170,000 ($68). Since last year the price had stabilized at Ush 125,000 ($50).
This has forced the price of a kilogram to rise to Ush 3800 ($1.5) from Ush3000 ($1.2) where it had stabilized for almost six months.
Officials say the abrupt price increase has been caused by supply constraints as 300 containers of sugar were held at the Kenya port of Mombasa.
Mr. Everest Kayondo, the chairman of Kampala City Traders Association (KACITA) a body that brings together traders in Kampala noted the authorities in Mombasa want the traders to pay a 100 per cent cash bond before the sugar is released.
However, traders in Kikuubo, Kampala's central business center said the price will remain high even after paying at the port since they will be required to pay another 100 percent cash bond in Kampala when the product arrives which costs will automatically be carried on to the final consumer.