Sugar price falls on lower demand, higher imports

Retail prices of sugar have started easing in what the sector regulator attributes to lower demand and sufficient stocks resulting from enhanced imports.

A two-kilo packet is now retailing at Sh210 on average from a high of Sh230 in July.

The Sugar Directorate said the desirable price should be Sh205 for the same quantity.

Kabras Sugar is retailing at a low of Sh205 for a two kilogramme packet, while local non-branded sugar is going for as low as Sh200 for the same quantity.

The head of the sugar directorate, Solomon Odera, said they had scaled up imports to cover up for dwindling local production.

The directorate normally issues import permits to traders to allow them ship in duty free sugar from regional countries.

“The directorate has endeavoured to ensure that we bring in imports that are commensurate with deficit and this has ensured that we have adequate stocks in the market that has helped to check high cost of sugar,” said Mr Odera.

“The current retail price can be considered reasonable and as a directorate we have always wanted the price to maintain a range of Sh205 and Sh210 in order to protect consumers from high cost of the commodity,” he added.

However, Mr Odera warned that the upward price pressure is likely to be felt from later this month as the country moves towards December festive season when consumption ordinarily spikes.

“We anticipate that the price may go up as we move towards December, this could happen as early as this month, but we expect to scale up the volumes so that the higher demand will not have a significant impact on the cost,” he said.