Sugar price in the local market fell to N6,950 per 50 kilogram (kg) bag by end of 2013, from N9, 000 recorded in 2012, representing 23 percent price decrease. In the same vein, refining capacity utilisation has also reached 75 percent, from 60 percent reported in 2012, information from the National Sugar Development Council (NSDC) has revealed.
In a document signed by Latif Busari, executive secretary, NSDC, it was disclosed that raw sugar imports had dropped to 800,000 tons, from 1.4 million tons recorded in the first quarter of 2013. Consequently, the country expects to save between $350 million and $500 million annually in foreign exchange on sugar imports.
Refined sugar imports also fell from 1.88 percent reported in 2012 to 0.67 percent by end of 2013, as total national demand rose from 1.5 million tons (in 2012) to 2 million tons (in 2013).
The refining capacity was able to rise from 60 to 75 percent owing to non-existence of smuggling, said NSDC.
According to the report, the milestones could be ascribed to the National Sugar Master Plan (NSMP) launched in January, 2013, with a 10-year implementation period, geared towards producing 1.79 million tons of sugar and 161.2 million litres of ethanol.
The master plan is also aimed at producing 1.6 million tons of animal feeds annually as well as creating 37,378 permanent jobs and 79,803 seasonal jobs, said NSDC.
“The number of sugar project sites in the country has increased from six in 2012 to 17 in 2013,” said the NSDC.
The proposed $2 billion investment across six states by the Dangote Group is expected to produce between 1 million tons and 1.5 million tons of sugar annually, BusinessDay’s Real Sector Watch learnt.
The report added that Kenana Technical Services had substantially expanded its Savannah Sugar located at Numan, Adamawa State, from 6,500 hectares to 21,000 hectares.
Also, FMNL/GSR, through its Adeco Agric Group, is to produce 60,000 tons of sugar annually from its 13,500 hectares in Sunti, Niger State, by 2018.
HoneyGold Group, through its subsidiary, Costas Negocios, is to invest $300 million on two sites in Adamawa State to produce 200,000 tons sugar annually, while Confluence Sugar Company is determined to invest $240 million to produce 200,000 tons sugar annually from 37,000 hectares at Ibaji in Kogi State,
Real Sector Watch further gathered that Crystal Sugar Mills’ plans to invest $30 million in expansion of its operations to produce 60,000 tons per annum by 2018.
