Published on Wednesday, November 21, 2018 at 21:49, new data shows sugar prices eased in October as supply improved from both local mills and imports.
According to the Sugar Directorate, a 50 kilogramme bag sold at Sh4,435 last month, down from Sh5,935 in September. That represented a 25.2 percent decline.
The drop came as October imports rose to 23,412 tonnes, up from 35,859 tonnes in September and well above the less than 10,000 tonnes recorded at the height of the crackdown that followed reports that sugar was unsafe for human consumption.
The directorate said total sugar imports in October were 23,412 tonnes, compared with 18,173 tonnes in the same period last year.
Local production also strengthened. Output in October reached 49,549 tonnes, rising from 36,502 tonnes in September, with the increase attributed to good weather.
Retail prices moved in the same direction. The sweetener, which had climbed to a monthly average of Sh152 per kilo in August, fell to Sh124 by the end of October.
The directorate said improved availability of both local and imported sugar in September 2018 helped push wholesale prices lower, which in turn pulled retail prices down through October 2018.
Imports had been suppressed earlier because traders feared their cargo would be confiscated during the government’s crackdown on illegal sugar. As the enforcement drive eased, imports began to recover and the market price followed suit.
