Following a directive by government to lower sugar prices, prices of locally milled sugar now retail at Rwf 800 down from Rwf1200 at the beginning of last week.

A mini survey conducted by The New Times yesterday showed that the traders complied with the directive.

The consumer prices of sugar had increased from Rwf 700 per kilo in May to Rwf1, 200 by July.

The Chairman of the Kimironko market traders, Innocent Bahizi, said the distribution of the commodity is now being controlled to ensure a regular supply.

"Every retailer is allowed to buy five sacks of sugar in a space of two days after which they are permitted to get another five bags,” sad Bahizi, explaining that the method helps to keep the supply flow stable.

Kabuye Sugar Works, (KSW) reduced the factory price to Rwf31, 000 for a 50kg sack while distributors sell a sack at Rwf33, 500 to retailers.

The Minister of Trade and Commerce, Francois Kanimba, said last week that common external tariffs were waived to help increase sugar imports and reduce its price.

”The duty free and the waiving of the surcharges of the common external tariff would help traders bring in sugar from countries that are outside the EAC and COMESA”, the minister said.

However, some traders at Nyabugogo alleged that imported sugar still sells between Rwf900 and Rwf1, 100 a kilo. However, they claim that the current agreement between them and KSW has discouraged importing sugar.

KSW produces 10,500 tonnes per year, 27 per cent of the total consumption of 40,000 tonnes in the country.

Sugar prices have been surging in other countries in the region including Uganda, once a leading supplier of the commodity in the Rwandan market.

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