Sugar shortage locally internationally to keep prices high

Sugar prices are likely to remain high due to shortage locally and in the international market.

Mumias Sugar managing director, Mr Evans Kidero said the current prices mirrors the international prices, and the situation is unlikely to improve soon.

Currently a kilo of sugar is retailing at Sh200 in most of the supermarkets.

Speaking during the signing of a contract between Mumias Sugar and Kenya Agricultural Research Institute to improve on productivity, he added that the cost of production had increased by 30 per cent over recent months.

“The current prices are a matter of supply and demand. We have shortage locally, and internationally where we used to by a metric tonne at $500, now its $1050,” Mr Kidero said.

He said the world market had a 3.5 per cent sugar deficit, putting pressure on sugar prices in the international market.

The problem has been aggravated by increased use of sugar for production of fossil fuels.

He said Africa imported half of sugar consumed, while countries in Common Market for East and Southern Africa imported 20 per cent.

He said the country required 340,000 metric tonnes to cover the deficit but only 300,000 metric tonnes was allowed by law.

About 60,000 metric tonnes of this come from Comesa countries.