Uganda Sugar Stockpiles Build as Exports to Neighbors Disrupted

(Bloomberg) --

Uganda sugar producers are holding large stockpiles after exports to neighboring Tanzania, Rwanda and South Sudan were disrupted, a lobby group said.

Projected output of 500,000 tons this year may result in a surplus of 150,000 tons that would ideally be exported, said Jim Kabeho, chairman of the Kampala-based Uganda Sugar Manufacturers Association.

“Factories are holding too much stock because of limited exports,” Kabeho said by phone on Monday.

Tariffs have curbed shipments to Tanzania, while exports to Rwanda were halted when the main entry point was closed in February. Flows to South Sudan, previously the largest importer, have been cut by conflict. That leaves Kenya, which more than doubled its Uganda sugar imports in May, and the Democratic Republic of Congo as the main export destinations, Kabeho said.

©2019 Bloomberg L.P.