Zambia: The Current Sugar Shortage in The Country
The Times of Zambia (Ndola) - 30 May 2008
The current sugar shortage in the country is a development which has taken most consumers by surprise.
The experience is reminiscent of the time of a controlled economy under which the shortage of essential food items including sugar and cooking oil was the order of the day. It is an occurrence which has been received with a lot of disbelief in many circles.
This is because the state of the Zambian economy can no longer be associated with the shortage of common food items like sugar. No doubt, explanations have been provided about the shortage of sugar.
The intervention of the weather, in particular flooding in parts of the Southern Province has much to do with the current state of affairs in as far as sugar production and supplies are concerned. There are also operational issues to do with Zambia Sugar itself. But as things stand now, the issue to focus on is not how and why it happened but seeking the way forward. In terms of the laws of supply and demand, the way forward is clear enough. Adequate amounts of sugar required to meet the domestic demand should be imported to flood the market. Right now, Zambia Sugar is importing the commodity but it is clear that the amounts coming into the country are far from being adequate. This is despite the fact that the company made an assurance that the situation pertaining to sugar supplies would be normalised in the shortest possible time.
To resolve this situation, the Ministry of Commerce, Trade and Industries could lift restrictions on the importation of sugar to enable as many private importers as possible to import the product. This need not be an extended authorisation, but one which is limited to a specific timeframe to enable Zambia Sugar resolve some current problems. In this way, Zambia Sugar would not be anxious about cheaper imported sugar flooding the local market and under-cutting their product. We have no doubt that Zambia Sugar can get on top of the situation soon, but as an interim measure which would also help the company itself recover its stocks, this would be the better arrangement.
As observed by Premier Consult managing consultant Oliver Saasa, sugar imports could go a long way to stabilise the price for the commodity on the local market.
The insufficient supply of sugar on the market has affected both domestic and industrial consumers on the local market and contributed to the current speculative prices for the commodity. In some parts of the country, the price of sugar has nearly tripled, exerting even more pressure on the rising inflation levels.
