9 August 2013

Uganda's Sugar Production Edges Higher

Ugandan sugar production edged up 3 percent year-on-year in the first half of 2013 due to increases in cane output and milling capacity and was on track to meet a target of more than 320,000 tonnes for the year, an industry official said.

East Africa's third-biggest economy consumes about 350,000 tonnes of raw sugar annually, and the government wants to attract more investment into the industry to meet demand, which is forecast to double by 2030.

The Uganda Sugar Manufacturers Association (USMA) said the industry had produced 164,200 tonnes of raw sugar in the first six months of the year.

"All the three big producers contracted more outgrowers this year to secure higher supplies of cane and also expanded their processing capacity last year, both of which account for the slight increase in output," USMA Secretariat Manager Wilberforce Mubiru told Reuters on Friday.

The USMA projects that the sector will produce a total of 322,976 tonnes overall this year, up from 289,665 tonnes last year when poor weather hurt cane production.

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