BY BANELE MAGONGO
MBABANE – The recent 11 percent increase in the sucrose levy has sparked discussions about its potential impact on consumers but consumers have been assured that it will not affect the price of sugar.
According to market View, the Ministry of Agriculture has announced that under the provisions of the Cane Growing Act of 1967, the sucrose levy has increased from E9 to E10 per tonne supplied to a miller, effective June 1, 2024.
Eswatini Cane Growers Association (ECGA) Chief Executive Officer (CEO) Dr Sipho Nkhambule, addressing concerns raised by consumers regarding the 11percent increase in the sucrose levy, he emphasised that sugar, being a commodity, was not influenced by product market forces. He expressed his belief that the adjustment in the levy would not impact consumers, as it is dictated by market forces.
He further elaborated on their efforts to enhance value addition for their businesses, outlining their strategic plan, which spans five years and is currently in its fourth year. As part of their strategy, they are establishing a special purpose vehicle to facilitate fund-raising for farmers, functioning similarly to a savings and credit institution.
Additionally, if successful, this vehicle will enable farmers to invest funds, thereby diversifying their revenue streams. He reassured that they are actively representing farmers in consultations regarding tariff escalation, underscoring its significance for sugar cane growers.
