President Yoweri Museveni has called for a special sitting of Cabinet on Thursday to discuss the state of the economy.
The sitting according to the information minister, Mary Karoro Okurut, will forge a way forward on how to curb the escalating food prices in the country.
This comes as central bank governor, Tumusiime Mutebile announces that the runaway inflation in the country, now standing at 19 percent, will take up to two years to address.
The price of sugar is currently averaging 5,000 shillings a kilogramme at most retail outlets in urban areas, up from 2,300 shillings at the beginning of the year.
Major supermarkets across Kampala have started rationing sugar to four kilogrammes for each buyer as the outlets seek to head-off stock-outs.
Government states that the public needs to be aware that the rising prices are due to high demand, not supply. It cites the ongoing maintenance at Kinyara Sugar Factory and the low production capacity at Kakira Sugar Works.
Government has thus written to the secretary general of the East African Community, Dr. Richard Sezibera about the ongoing sugar scarcity in Uganda. The letter requests for an exemption on sugar tariffs so that importation of sugar to Uganda is facilitated from outside.
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All East African countries have to seek permission from the East African community to be exempted from the common external tariff before importation.
The government adds that it is waiting for the reply from Dr. Sezibera before end of day tomorrow.
Karoro says the intervention on sugar prices specifically is being made paramount because of its importance, but all other food necessities will be discussed in the Thursday cabinet meeting.
