Just in: Sugar price goes up

Sugar producer, Tongaat Hulett Zimbabwe (THZ) has with immediate effect almost doubled the price of sugar.The last increase in the commodity’s price was in March.In a statement yesterday, the sugar producer pegged a 1kg packet of brown at $63,84 from $32,58 while a 2kg packet is now costing $127,68 from $65,17. A 5kg packet of brown sugar is now selling for $319,20, while a 10kg at $638,40.The recommended selling price for a 1kg packet of white sugar, according to Tongaat Hulett is now $67,21 from $34,29, while for a 2kg packet is $134,42 from $68,57.The price of a 5kg packet has been pegged at $336,04, while a 10kg packets now costs $672,09.

Zimbabwe Sugarcane Farmers Development Association chairperson, Mr Edmore Veterai said the price adjustments by Tongaat Hulett were justified taking into consideration that the production costs had gone up.“An example is that as sugarcane growers, input costs have gone up and it is pegged at US$500 to produce a tonne and when we sell that tonne we only get an equivalent of US$273. So how do we expect us to produce when the production cost is more? We are selling our sugarcane at a price which is below the production cost,” he said. He cited several factors that were involved in the production of sugar saying that the consumers should be aware of.

“It also must be well understood that A2 farmers are producing about 33 percent of the sugar that is consumed in the country and we are not being recognised also as strategic sugarcane producers,” said Mr Veterai. He said the sugar that was produced in the country was the cheapest in the region and hence the price adjustments would improve supplies.Tongaat Hulett recently increased the price of citing cost adjustments in line with the interbank exchange rate.