Sugar: Five things to know about the "wild distribution of DIPA"

These authorizations weaken local sugar production. With 35,000 tons of its production in stock at a time when the market is flooded with imports, the Senegalese Sugar Company (CSS) is bearing the brunt of the consequences. So is Senegal's food sovereignty. Dakar Times is sounding the alarm.

1. Twenty billion CFA francs immobilized

Import Declarations for Food Products (DIPA) authorize their entry into the national territory. In principle, they serve to protect local production. However, for the sugar market, these authorizations have had the opposite effect, as they were issued while 35,000 tons of the Senegalese Sugar Company's (CSS) production were stored in its warehouses. This represents "nearly 20 billion CFA francs of tied-up cash." These stocks, which should normally supply the Senegalese market and generate revenue for the company, remain blocked by the presence of imported sugar , notes Dakar Times. This situation directly undermines CSS's financial capacity to continue its operations and invest in increasing its production.  

2. Same scenario

Since the end of July, while CSS's production is still far from exhausted, the local market has been flooded with imported sugar. This situation is reminiscent of last year's. "In 2025," recalls Dakar Times , " the quantities of sugar authorized for import would have already caused a sales freeze for CSS from mid-July 2025 to February 2026. A particularly long period, especially considering that the company still had stocks from the 2024-2025 sugar campaign and had resumed production for the 2025-2026 campaign as early as November 2025."  

3. Unfair competition

The CSS feels abandoned. It was not invited to the consultation meeting held at the end of July between the relevant authorities and the main sugar importers' groups. "This meeting reportedly resulted in the establishment of a reference value of only 380 euros per ton ," the daily newspaper reports . "However, the CIF value of imported sugar is currently around 450 euros per ton, or approximately 300,000 CFA francs. This difference represents a considerable advantage for importers. Even applying the historical equalization value of 399,000 CFA francs and the temporary import tax (TCI) would still leave a trade margin estimated at around 15%. Such a wide margin would allow importers to manipulate wholesale prices and make imported sugar more competitive than locally produced sugar."

4. Investments of 100 billion CFA francs jeopardized

During a meeting with authorities in 2025, CSS proclaimed its ambition to increase its production capacity to 220,000 tons by 2030, as part of the implementation of its future strategic development plan, KT220. It planned to mobilize over 100 billion CFA francs for this purpose. "This program was intended to take over from the KT150 plan, which was nearing completion ," reports Dakar Times. "The objective is to contribute to 'Senegal Vision 2050,' strengthen food sovereignty, develop the national industry, and create 1,000 new jobs. But today, according to our source, CSS is reportedly forced to suspend all investment. Despite its stated desire to continue its development, it no longer considers current market conditions compatible with pursuing its investments."  

5. President Diomaye Faye is summoned

Despite the challenge to the memorandum of understanding that allowed its KT150 plan to benefit from tax and customs support, CSS was planning new investments as part of the implementation of the KT220 plan. "Discussions with the authorities had raised hopes ," recalls Dakar Times . " President Bassirou Diomaye Faye's visit to Richard-Toll in June 2025 was notably seen as a strong signal of recognition of the strategic importance of CSS's development program for Senegal. But faced with the accumulation of stock, the pressure on cash flow, and the lack of regulations deemed effective, the situation risks worsening."

The newspaper adds: “It must be noted that even if tax, customs, and land issues are resolved, investments will not yield the expected results if domestic sugar is systematically undercut by imports authorized before local stocks are depleted. The Head of State and the Prime Minister are urged to take action.” to restore the conditions for fair competition and ensure the survival of national investments in the sugar sector. The stakes go far beyond CSS alone. They concern Senegal's industrial policy, employment, state revenue, and food sovereignty.