Sugar producers suspend deliveries

MASVINGO - Zimbabwe’s sugar producers have suspended indefinitely the sale of sugar, while demanding that the price of the commodity be pegged in foreign currency amid reports that workers in the industry have downed tools demanding salaries in forex.

The country’s two sugar milling giants Triangle Limited and Hippo Valley have stopped delivering sugar arguing that the Zimbabwean dollar is now useless.

The move is likely to further worsen the shortage of the product on the local market where it has been in short supply since 2007.

Sugar prices in the country are controlled by government and the players in the industry have to apply to the state to set new prices.

Sources at the two companies yesterday revealed that all sales had been suspended while those who had booked for supplies had their orders cancelled.

However the companies will continue to service their external markets

“We have stopped all sugar sales until such a time when we are allowed to sell the product in forex”, said a senior official at Triangle.

“It has become unviable to continue selling the product in Zimbabwean dollars and we have since formally applied for the prices to be pegged in forex”.

“Until this has been done we have suspended all sales”.

Chief executive officer of the Zimbabwe Sugar Producers Association, Daniel Nsingo, yesterday confirmed the development.

“We have to come up with a proper pricing structure because selling the product in Zimbabwean dollars is no longer viable”, aid Nsingo.

It also emerged yesterday that workers in the sugar industry this week downed tools demanding payment in forex.

A spokesman for the workers said, “We are no going back to work until our demands are met.

“We need to be paid sustainable salaries hence the industrial action. We are demanding an average of US400 a month for the least paid worker in the industry”.