Indian firm to establish sugar factory in Tanzania to boost production

TANZANIA – Indian sugar miller, Purandare Industries (T) Ltd, plans to establish a mega sugar processing factory in Tanzania’s capital, Dodoma.

According to the company’s Managing Director, Satish Purandare, construction of the 20,000 acres factory is expected to kick off in June this year.

Operations at the factory which will have the capacity to produce 5,000 tonnes per year is project to start in June 2021.

“I am happy that the government under president John Magufuli has been giving me a lot of collaboration, and at this stage we are just waiting for all legal documents which are at the final stage of delivery by different government entities,’’ he said.

The investment will play a pivotal role in improving the economic sphere of the citizens as the company expects to enter into a contract with farmers within the region to grow sugar cane for the factory’s raw materials.

“Despite providing permanent jobs for hundreds of farmers, the plant will also stimulate different socioeconomic activities in the district and the region at large,” he said, adding, “I want to see Tanzanians becoming investors in their nation.’’

Purandare Industries also intends to provide technology support and inputs to out-grower farmers for sugar cane production and also add value to the cane produced.

He said that the sugar which will be produced at the high-tech factory will carry the brand name ‘Sukari Halisi’.

The new factory comes as good news as it will help to reduce sugar deficit in the country.

Recently, Tanzania decided to partly open its borders to Ugandan sugar exports following more than a year of being locked, on accusation that the latter is importing and repacking the sugar for export.

This was revealed by Mr Japheth Hasunga, the Tanzanian Minister of Agriculture who was in Uganda to assess its sugar production and capacity.

He visited Uganda’s four major sugar factories out of the 11 operational i.e. Kakira Sugar Works, Kinyara, Sugar Corporation of Uganda Limited.

He noted that the sugar will be traded under a new arrangement that will only involve government-to-government.

In 2019, Tanzania’s sugar production was 359,219.25 tonnes against the domestic demand of 545,000 tonnes.

The government has also adopted a strategy to establish new sugar industries including Bagamoyo Sugar Limited that will start with 35,000 tonnes by 2022.

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