Agricultural and Food Authority report; sugar price goes down by Sh6
1 months ago, 19 Oct 12:24
Consumers of sugar are expected to purchase sugar at a price of less Sh6 a kilo following the fall in the price of the commodity according to Agriculture and Food Authority report.
September saw a fall in the price of sugar by Sh6 compared with August due to high supply and crackdown on illegal products started in May.
Kilo of sugar in September retailed at an average price of Sh146 compared to Sh152 retail price in August according to data from Agriculture and Food Authority.
Before government’s tax free window for imports issued by the treasury, the cost of a kilo of sugar in June 2017 was Sh149 the highest through September 2018 when the same was Sh146.
In September AFA said through a report, “the downward trend (in sugar production) reversed from a low of 28,320MT (metric tonnes) in June 2018 to close the period under review (September 2018) with an improved sugar production of 36,502 MT. However, most sugar factories are grappling with limited supply of sugar cane which has led to the mills operating below 50 percent of their installed crushing capacity.”
Persistent drought throughout 2016 made the government to remove import duty on the product due to a decrease in its production which pushed the price of a kilo to Sh179 in May 2017.
The import waiver in July 2017 resulted in sugar oversupply which saw the decrease in the price of the product to Sh75 per kilo.
In May, Kenya Bureau of Standards began a crackdown on illegal sugar imports a move that resulted in an increase in the price of sugar to Sh200 a kilo.
Category: business news