AGL 40.10 Increased By ▲ 0.09 (0.22%)
AIRLINK 128.55 Increased By ▲ 1.55 (1.22%)
BOP 6.74 Increased By ▲ 0.05 (0.75%)
CNERGY 4.74 Increased By ▲ 0.23 (5.1%)
DCL 8.70 Increased By ▲ 0.06 (0.69%)
DFML 41.07 Increased By ▲ 0.03 (0.07%)
DGKC 86.09 Increased By ▲ 0.48 (0.56%)
FCCL 33.30 Increased By ▲ 0.19 (0.57%)
FFBL 66.55 Increased By ▲ 0.45 (0.68%)
FFL 11.56 Increased By ▲ 0.01 (0.09%)
HUBC 110.99 Decreased By ▼ -0.12 (-0.11%)
HUMNL 14.89 Increased By ▲ 0.07 (0.47%)
KEL 5.13 Decreased By ▼ -0.04 (-0.77%)
KOSM 7.78 Increased By ▲ 0.12 (1.57%)
MLCF 40.74 Increased By ▲ 0.53 (1.32%)
NBP 60.81 Increased By ▲ 0.30 (0.5%)
OGDC 195.50 Increased By ▲ 1.40 (0.72%)
PAEL 26.89 Increased By ▲ 0.17 (0.64%)
PIBTL 7.52 Increased By ▲ 0.15 (2.04%)
PPL 156.99 Increased By ▲ 3.20 (2.08%)
PRL 27.56 Increased By ▲ 1.35 (5.15%)
PTC 18.35 Increased By ▲ 1.17 (6.81%)
SEARL 86.40 Increased By ▲ 0.80 (0.93%)
TELE 7.78 Increased By ▲ 0.21 (2.77%)
TOMCL 34.60 Increased By ▲ 0.21 (0.61%)
TPLP 9.39 Increased By ▲ 0.57 (6.46%)
TREET 17.11 Increased By ▲ 0.29 (1.72%)
TRG 62.99 Increased By ▲ 0.44 (0.7%)
UNITY 27.60 Increased By ▲ 0.31 (1.14%)
WTL 1.32 Increased By ▲ 0.02 (1.54%)
BR100 10,182 Increased By 70.6 (0.7%)
BR30 31,400 Increased By 211.8 (0.68%)
KSE100 95,863 Increased By 866.9 (0.91%)
KSE30 29,744 Increased By 262.9 (0.89%)

Kenya needs to urgently reform its inefficient sugar sector - a major employer in the country's impoverished west - before 2008, when the industry will face a flood of cheap imported sugar, a World Bank economist said on Tuesday.
Kenya currently allows only 200,000 tonnes of sugar to be imported under the Common Markets for Eastern and Southern Africa (COMESA) zero tariff system. The system will end in February 2008, paving the way for unlimited importation of sugar which, experts say, will undermine the country's struggling sugar industry.
Kenya currently produces 400,000 tonnes of sugar and consumes 600,000 tonnes, with the deficit coming from importers.
Over 100,000 small-scale farmers are engaged in growing cane in western Kenya, making the industry the major employer in a region where most people live on less than a dollar a day, World Bank economist Donald Mitchell told a conference in Nairobi.
The economist said in a report that Kenya would have to reduce the high costs of production for the industry to become competitive.
"Domestic sugar prices are about 50 percent higher than imports after all fees and levies are paid ... Sugar prices will need to decline about one third to compete with imports," he said.
Cane yields must be increased to allow sugar production costs to fall and sugar factors privatised, he added.

Copyright Reuters, 2004

Comments

Comments are closed.