East Africa: Rwanda Blames Sugar Shortage on Region's Hefty Import Tariff

The price increases were partially attributed to a shortfall in supply as well as the temporary shutdown of Kabuye Sugar Works -- the country's sole sugar producer -- in addition to regional shortages due to floods and increased demand.

Currently, the country largely imports its sugar from within the EAC or from Comesa member states, in particular within the Free Trade Area that allows sugar to come in zero rated.

Sugar consumption is currently estimated at 40,000 metric tonnes per year. "Our importers still find it difficult to find sugar... particularly within a global framework where the sugar industry is undergoing a crisis," Mr Kanimba said, adding that large suppliers in the global market give priority to big orders.

However, Mr Kanimba said the government is reconsidering refurbishing Kabuye Sugar Works to increase local production in the long term.

It is also considering a request by investors, including Algeria's biggest sugar producer Civital Group, to provide 20,000 hectares of land to grow sugar cane to supply a sugar milling plant with an annual capacity of 200 metric tonnes.

Tanzania, Uganda, Rwanda and Kenya together consume more than 1.5 million tonnes of sugar per annum.

Globally, consumption has been forecasted to grow at a rate of 2.19 per cent to 165 million tonnes of raw sugar this year.

However, world sugar production has been revised downwards in the recent past (2008/2009) to 149.3 million tonnes raw value.

This represents a 12 per cent decrease on 2007/2008 mainly due to the fact that the sugar cane growing area is being reduced and taken up for biofuel production.