Govt urged to stop cheap sugar imports
From George Maponga in CHIREDZI
The future of nearly 20 000 workers employed in the Lowveld sugar industry is under threat owing to an influx of smuggled cheap sugar amid reports that over 50 000 tonnes of the commodity is being dumped into the country every year.
Cheap low quality sugar is reportedly being smuggled into the country mainly from Malawi.
The parliamentary portfolio committee on Land, Agriculture Mechanisation and Irrigation last Friday implored Government to stem the rampant smuggling of sugar and issuing of import licences to save the local multi-million sugar industry from collapse.
Speaking after a tour of the Lowveld, the committee said there was an urgent need to arrest the ongoing dumping of cheap and low quality sugar onto the local market.
Zimbabwe produces about 480 000 tonnes of sugar every year against a local demand of 300 000 tonnes leaving the country with a surplus of about 180 000 tonnes.
Some of the surplus sugar is exported but declining world sugar prices have left Zimbabwe short of international markets.
Committee chairman and Muzarabani legislator Cde Christopher Chitindi said Government should shield the local sugar industry as it was strategic to the country’s economy.
“The local sugar industry will continue to be severely affected unless Government moves in to stop smuggling of cheap sugar that is being dumped into the country,’’ he said.
“We implore Government to stop issuing sugar import licences because Zimbabwe is producing more sugar than it requires. If more sugar is imported, we will be flooding an already saturated market and this affects affect local producers.’’
Cde Chitindi said his committee was going to take the issue of dumping of cheap sugar onto the local market to their counterparts in Parliament to pressurise Government to act.
Chiredzi West legislator Cde Darlington Chiwa, who is also a member of the committee said Government should hike tariffs on sugar imports to protect the local industry.
“The future of more than 20 000 workers employed in the Lowveld sugar industry and thousands of indigenous out-grower farmers is under threat unless Government acts against the proliferation of cheap imported sugar that is being dumped in the country,’’ he said.
In his briefing to members of the committee, Tongaat Hulett managing director Mr Sydney Mtsambiwa said the local market was the mainstay of the sugar industry adding that allowing imports and smuggling of more sugar had serious effects.
Sugar prices have been on a free fall on the international market owing to increased supplies from major producers such as Brazil.