Abstract

The study aimed to measure the competitiveness of sugar cane in Kenana Sugar Company as the major objective covering the seasons 2004/05, 2005/06, and 2006/07. Specific objectives are to measure the hard currency revenue gained, the quantity of local resources used to gain hard currency, efficiency of local resources used and to see whether Kenana Sugar Company is taxed or subsidized. The study depended mainly on secondary data which was collected from different sources. The data was analyzed using Policy Analysis Matrix (PAM). Also, sensitivity analysis was used. The study revealed that, sugar production appeared highly competitive in the national and international level under study period and government policies are taxing sugar cane production. The sensitivity analysis results summarized that: increasing in yield and world price result in improving sugar DRC and vice versa while increasing in exchange rate results in worsening DRC and vice versa. The study recommended that, the government should exempt sugar cane production from taxes, induce incentives to encourage sugar industry production and secure sustainable and steadiness foreign exchange.

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