Mahakaushal Sugar and Power Industries, an India-based company engaged in the production of sugar and its by-products, in collaboration with Tanzanian counterparts, is set to build a new sugar production factory in Rufiji district, Tanzania.

The new sugar factory is expected to have the capacity of producing 125,000t per annum initially.

The company said that it has already acquired nearly 10117ha for Rufiji Sugar Plant, the proposed sugar cane plantation and cane sugar processing project.

The project is estimated to commence the commercial production in July 2014.

Rufiji Sugar Plant project coordinator Kiondo Mahanyu said that the total investment in the project is expected to be $150m which would be further raised to $250m.

"We expect that after three years the plant will be expanded to crash 10,000 tonnes per day, which will result in the production of 250,000 tonnes of sugar annually," Mahanyu added.

The Indian company also aims to establish a tissue culture and agricultural laboratory in June 2012, and the technicians and equipment will be sent from India.

Mahakaushal Sugar and Power Industries finance director Bharat Kabra said that the new project is expected to provide direct employment to 500 people in 2012 and the number would increase to 10,000 people by next year.

"Local people will be trained to operate sugar mill machinery and will be directly employed after training. We will provide sustainable agricultural techniques for cultivation of sugarcane, use of chemical fertilisers and pesticides," Kabra added.

Statistics show that Tanzania has been witnessing sugar shortage for both industrial and domestic use since its independence, while official government sources reveal that the country’s current sugar consumption is 480,000 tonnes per annum.

Image: In three years, the plant will be expanded to crush 10,000t of sugar per day, which will result in the production of 250,000t of sugar annually. Photo: Lauri Andler.