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Sugar Corporation cuts factories’ quota by half PDF Print E-mail
By Muluken Yewondwossen   
Tuesday, 08 January 2013 08:58

The Ethiopian Sugar Corporation slashed the sugar quota supplied to industrial units by half Capital learnt.

The gap between sugar demand and supply is not new for the country as it has been recurring in the past consecutive years. However, following the restructuring of the corporation two years ago, industries did not suffer from the scarcity on the market.
This time however, the corporation notified sweet factories that it will cut their supply until February due to lack of sufficient production. Following their notice two weeks ago, sweet factories owners held a discussion with the Ministry of Trade.  “After a discussion we had last week with the officials from the Ministry of Trade, we were notified that we will be supplied with half of the usual quota for our production,” they said.
Immediately after the government disclosed that it will cut the supply of sugar for the factories until February, the price of sugar has increased by to two birr from 14.50 birr per kilogram to 16.50 birr by the end of last week in Merkato, and other major market places in the country.
Sugar supplied via the state owned Et Fruit Enterprise and Merchandise Wholesale and Import Trade Enterprise (MEWIT) or through Kebeles costs 14.50 birr a kilo.
Meanwhile, officials at Ministry of Trade and Ethiopian Sugar Corporation maintain that there is no shortage of sugar. Sugar supply and distribution, both imported  and produced locally is handled by the Ethiopian Sugar Corporation. 
Currently, the state owned three sugar factories, Metehara, Finchaa and Wonji Shoa remain far from meeting the demand. The three factories are undertaking several expansion projects to increase their capacity.
To reduce the supply gap the government imports sugar every year through international bidding. Tendaho Sugar Factory, a new addition to the industry and the biggest state owned factory is on its final stage of construction and will soon commence production.
Ethiopia has given high attention to expand the sugar sector not only to meet the local market but to also be one of the major sugar exporters on the market.  Due to that the government has launched some nine sugar development projects in different parts of the country that are scheduled to be completed in the coming few years.
The government aims to become self-sufficient sugar producer by the end of 2013 and increase production eightfold to 2.3 million tons by mid 2015, creating a surplus of 1.25 million tons for export.


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