Kenya increases sugar imports to meet local demand

Published 2022년 6월 22일

Tridge summary

Kenya's sugar production is projected to decrease by 4% to 660,000 MT in MY 2022/23 due to higher fertilizer prices reducing fertilizer application and lower yields, despite an increase in harvested area. Private mills, which account for 80% of total sugar production, are expanding, leading to increased yields and processing efficiency. Consumption is expected to rise by 5% to 1.15 million MT as consumers return to restaurants and hotels following COVID-19 restrictions. Kenya plans to import 500,000 MT of sugar to meet the increased demand, primarily from COMESA countries, and has set an annual limit of 180,000 MT for raw sugar imports. Imported sugar is subject to a 100% tariff, except for refined sugar used in manufacturing goods for export, which is subject to a 10% tariff discount.

Disclaimer:The above summary was generated by Tridge's proprietary AI model for informational purposes.

Original content

Sugar production in Kenya is expected to fall by 4% to 660,000 MT in MY 2022/23, owing to lower sugarcane yields caused by higher fertilizer prices, which are expected to limit fertiliser application. Despite an increase in harvested area, which is expected to increase by 3% from 209,000 to 215,000 hectares due to new plantations in Transnzoia sand Narok counties, production will fall. Sugar has become a more appealing option than maize for many farmers in these areas due to lower labour requirements and guaranteed farmgate prices and sales through mill contracts. According to a GAIN report, USAID notes that private mills, which account for nearly 80% of total sugar production in the country, are expanding into zones previously reserved for state-owned operations. In the long run, this will almost certainly increase Kenya's sugarcane yields and processing efficiency. According to Kenya's Sugar Research Institute (SRI), new private-sector-supported sugarcane plantations can produce ...

Source: Krishi Jagran