Sugar price up 75 percent

SUGAR producer, Tongaat Hulett Zimbabwe (THZ) has increased the price of brown sugar by a whopping 75 percent with immediate effect citing cost adjustments in line with the interbank exchange rate.

According to a new price table from the company a 1kg packet of brown sugar now costs $8,61 while a 2kg packet is now selling at $17,22 with 5kg selling at $43,05.

A10kg pack is going for $86,10. The last increase in sugar pricing was done sometime in June when it was increased to $9.98 for a 2kg pack from around $5.

However, the pricing table shows that white sugar remains unchanged at $5,22 for 1kg and $10,44 for 2kg with $26,10 for 5kg and $52,30 for 10kg respectively.

Zimbabwe Sugar Sales board member Mr Admore Hwarare confirmed the increases yesterday saying that, considering the interbank rates, the increases were reasonable. The interbank rate hovers around US$1:ZW$8,5- ZW$9,6

“Given the circumstances we find ourselves in as the sugar industry, the adjustments are reasonable. We, however, urge retailers and other players who get our sugar to desist from rent seeking behaviour through pegging the commodity at prices outside the recommended rates.

“We have some unscrupulous retailers who take advantage of the laxity of the market by unjustifiably increasing the prices,” said Mr Hwarare.

He said there was enough sugar in the market, which could last for the next three years and advised consumers against hoarding the product. — @walterbmswazie2