Consumers are still paying more for sugar despite initial projections showing that the cost was likely to come down following increased sugarcane production.
A spot check across major retail stores in the city shows that sugar prices have risen, in some instances by Sh20, compared to a couple of months ago.
A two-kilogram packet of Kabras sugar is now retailing at Sh269 in some retail stores, up from an average of Sh250 in August.
A two-kilogram bag at Quickmart was retailing for between Sh249 and Sh269 depending on the brand, while at Naivas all brands retailed at Sh259. Carrefour is selling a pack of Mumias Sugar at Sh283 with its lowest priced economy white Sugar going for Sh249.
However, despite the rise monthly statistics released by the Agriculture and Food Authority’s sugar directorate shows that factory prices for sugar dropped, which is supposed to translate to lower prices.
“The weighted ex-factory sugar price for September 2024 further dropped to Sh5,059 from Sh5,075 per 50 kg bag in August and Sh5,325 per 50 kg bag in July 2024. Wholesale prices dropped to an average of Sh5,367 per 50kg bag, down 1 per cent from Sh5,424 per 50kg bag in August 2024,” reads the sugar directorate market update for September.
In September, retail sugar prices averaged Sh136 per kilo, down from Sh141 in August. In the review period, mill white per brown totalled 7,491 tonnes while white refined sugar was 27,935 metric tonnes.
The total sugarcane milled in the country slightly decreased by 0.4 per cent, reaching 796,851 metric tons (MT), down from 800,286 MT in August.
However, sugar production saw a rise, increasing to 73,634 tonnes compared to 73,409 tonnes the previous month.
The industry’s average cane to sugar ratio (TC per TS) improved marginally to 10.82 in September, up from 10.9 in August.
Total bagged sugar production also experienced a 1per cent increase, rising to 73,818 tonnes from 73,386 tonnes in August.
In the nine months to September, total sugar production reached 615,499 MT, marking a significant 65per cent increase from 374,119 tonnes during the same period last year.
Conversely, sugar sales in September fell by nine per cent to 76,688 tonnes, down from 84,037 tonnes in August. At the end of September, closing stocks of sugar held by factories were reported at 21,255 tonnes, down from 24,376 tonnes at the end of August.
Additionally, molasses production dropped by four per cent to 31,641 tonnes in September, compared to 33,089 tonnes in August.
Despite the push to boost earnings for local farmers, sugar imports in September totalled 35,426 metric tonnes, an increase from 18,733 metric tonnes imported the previous month.
This came against Cabinet Secretary for Agriculture and Livestock Development Andrew Karanja’s directive, to sanction an increase in the sugarcane price from Sh4,950 to Sh5,000 per tonnes to boost farmers’ fortunes.
Meanwhile, the price of sugarcane remained steady at Sh5,000
per tonne, unchanged since the last
review on August 22, 2024.