Kenya increases price of Sugar as Shilling weakens

0
254

Kenya increased the price of sugar over weak shilling and global scarcity.

The increase in price has made it more profitable for the country to sell their commodity to the European market where it is fetching a premium.

According to the International Sugar Organisation, the sugar prices on the world market have been volatile in the last one year with a tonne of the product going up from $509 in January to $531 in August.

It was gathered that Kenya now relies on imported sugar to meet its annual deficit which has now grown to 200,000 tonnes, with the country consuming one million tonnes against production of 800,000 tonnes annually.

According to the Sugar Directorate, in the EU prices are higher by at least $20 per tonne compared to those within the region.

“The diversion of the commodity to other markets has contributed to an acute shortage of the produce, thus denying countries that benefit from quota sanctioned by the regional bloc secretariat every year,” Willis Audi, head of the sugar directorate said.

Sugar prices have been on a consistent increase since August with a two kilo packet retailing at Sh300, up from Sh230 in June.