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Tuesday, May 10, 2016

OPPOSITION BLAMES MAGUFULI ON SUGAR CRISIS IN TANZANIA


The Opposition yesterday blamed the shortage of sugar rocking the country on an import ban President John Magufuli imposed on the commodity whose prices continue shooting up in the market.
The shadow minister for Industry and Trade, Mr Anthony Komu, told reporters yesterday that the ban, coupled with recent arrests of businessmen suspected of hoarding sugar was invalid in a free-market economy and that the move might end up frustrating the local business environment.
As the Opposition criticised the government, the Police Force in collaboration with the Prevention and Combating of Corruption Bureau (PCCB) seized a consignment of 648.9 tonnes of the commodity. While 622.4 tonnes were found hoarded in Morogoro, 26.5 other tonnes were impounded in Mwanza.
Speaking at Bunge grounds yesterday, Mr Komu said the ban was possibly influenced by a retired leader (name withheld) who owned some sugarcane plantations in Mtibwa. “Local producers have no capacity to meet Tanzania’s demand,” said Mr Komu, who was flanked by Mr Saed Kubenea (Ubungo - Chadema).
“The ban is surprisingly imposed on sugar alone, leaving other key products like cement. We suspect one retired leader has deliberately influenced him (President Magufuli)to protect his sugar plantations in Kilombero,” he said. Mr Komu said he had no link with businessmen, but he was concerned over the future of the economy and the fact that Tanzania’s was a free-market one. “We’re not defending businessmen distorting the market through creating artificial shortages, but rather the interference with businesses especially in this era of a free market economy.
“The Head of State has ordered authorities to distribute the impounded sugar free of charge, what if the US dollar or meat becomes scarce? Will he order cows to be slaughtered and the meat to be distributed among consumers free of charge,” he queried.
He said the government’s role was to facilitate production of affordable sugar by improving infrastructure or subsidising the industry.
“Why sugar is becoming like cocaine in Tanzania? We’re not protecting any trader, but impounding sugar and distributing it free of charge is dangerous to businesses and commercial banks where these people borrowed,” Mr Kubenea said.
He added that the ban was even against international ratifications such as those of the World Trade Organisation.
The government said last month that it would allow importation of 100,000 metric tonnes to avert the shortage which compels consumers to buy the product at Sh3,000 per kilogramme.
Meanwhile, the Dodoma Regional Defence and Security Committee allowed Mr Haidary Gulamali to sell his 154 metric tonnes of sugar the Prevention and Combating of Corruption Bureau is investigating.
Dodoma regional commissioner Jordan Rugimbana said the sugar would be sold here at a government cap price he did not mention.
A survey by The Citizen established that prices of the commodity have not decreased, as it retailed at between Sh2,600 and Sh4,000 a kilogramme in various pockets of the country.
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