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    1.0.24

    Sugar Prices Hit Record High on Decline in Sugar Cane Production

    Leah
    By Leah Wakarima
    - October 10, 2022
    - October 10, 2022
    AgricultureKenya Business news
    Sugar Prices Hit Record High on Decline in Sugar Cane Production

    A two-kilo of sugar has risen by Sh 12 at a time when the country is facing a 34 per cent decline in cane production.

    In leading retail stores such as Naivas and Quickmart, a 2-Kg Packet of sugar has gone up from Sh300 last week to Sh312 currently.

    The rise in prices comes at a time when the country’s sugar production in August dipped 34 per cent compared to the previous month, attributed to immature canes and the just concluded general elections.

    Data from the Sugar Directorate showed that total production dropped to 46459 tonnes in August from 70278 tonnes in July.

    The directors attributed the drop to factory maintenance at Soin, OlePito, and Soin, as well as the re-opening of the Chemelil and Nzoia plants.

    Over the last few months, prices of basic household items such as cooking oil, and flour, among others, have been rising, as inflation hit a record high of 9.2% in September from 8.5% in August.

    Kenya Bureau of Statistics (KNBS) attributed the rise to an increase in the cost of food, and fuel as well as the depreciation of the Kenyan shilling against the dollar.

    Efforts to stabilise sugar prices have been hampered by a 210,000 sugar import cap that the Treasury introduced to protect local producers.

    Under the Common Market for Eastern and Southern Africa (COMESA), members are allowed to import up to 350,000 tonnes, meaning that the country could import an additional 140,000 tonnes to cushion locals.

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