During the same period last year, the same phenomenon occurred wherein, 10, 000 metric tons were ordered from the Democratic Republic of Congo. The sugar which came in three instalments, 2,500 tons on October 10; 4,000 tons on October 20, and 3,500 tons at the end of the month added to the 10,000 tons of the stock that existed at SOSUCAM.
Government, on the two occasions was reacting to the undesirable consequences caused by the scarcity of the product. According to Valentin Mbarga Bihina, Director of Internal Trade in the Ministry of Trade, the drop in supply is blamed on low production, black market, speculation and the emergence of satellite industries using sugar as raw material. Putting aside production which has long been the bone of contention between the government and sugar producers, it is important however to admit that the sugar market is imbued with lots of marketing complications.
At the time the product is said to be quasi absent from shops in the local markets, consumers in neighbouring countries continue to buy in bigger quantity but at higher prices. This, of course, brings in better benefit to sugar companies. In the same vein, wholesalers speculate on irregular supply, hoarding the product to sell at higher rates. As a consequence, a kilogramme of sugar today sells at between FCFA 800 and FCFA1, 000, according to one natural juice manufacturer in Yaounde. The consequences are far reaching with the final consumer, bread eater, juice drinker, and chocolate eater among others carrying the heaviest burden.
How far this state of affairs will go is the question on every lip. Ordering the momentary importation of sugar as a matter of emergency is a solution but not a lasting one. At 120,000 metric tons a year, sugar companies are unable to satisfy local and sub regional demand. Despite the low production, government has been careful not to open the floodgates for foreign sugar to flow into the country. Not because foreign sugar is of poor quality, but because it has the duty of protecting local industries. All this is done with the aim of enhancing their performance. Unfortunately, this has not produced the desired results.
Perhaps it is time to rethink a new strategy; that which will enable government to protect local companies and at the same time ensure a regular supply of the product. Maybe, this could go by sharing the quota of sugar supply between local companies and importers. This is the big challenge now.