Demand Sends Sugar Up
SUGAR prices in and around Kampala have shot up, as traders are being over-whelmed by increasing demand from shoppers bracing for the festive season.
By Ricks Kayizzi
SUGAR prices in and around Kampala have shot up, as traders are being over-whelmed by increasing demand from shoppers bracing for the festive season.
A mini survey carried out by The New Vision over the weekend, found 50 kilogramme (kg) bags of Kakira sugar being sold at sh70,000 each, up from sh65,000 earlier in the week.
Traders from both the new Taxi Park and Kikuubo, attribute the price increase to the failure of local producers to supply the growing demand for sugar on the market.
“It has become common that Kinyara and Lugazi sugar runs out of stock whenever there is any increase in demand. This only leaves Kakira sugar (left) on the market. As a result, prices shoot out of the roof due to lack of competition,†said a dealer in Kikuubo.
At Lugeye Trust Store, in the New Taxi Park, a 50kg bag of Kakira sugar was selling at sh68,000 and at sh67,800 for bulk purchases.
“We now have to negotiate with buyers in order to ensure that we do not incur losses, because prices can rise or fall any time,†said a dealer at the store.
He said they had not received any official communication from the producers about the situation or when it would be be rectified by suppliers.
At Luuka General Enterprises in Kikuubo, another dealer said that although a bag of Kakira sugar was selling at sh65,000 on Saturday morning, it had jumped to sh69,000 in the evening. She said they anticipate the price to go as high as sh75,000 for a 50kg bag by Christmas.
In retail shops in and around Kampala, sugar is selling at between sh1,500 and 1,700 per Kg.
Jane Bitek Langoya, the Kinyara Sugar Works Company Secretary, said that their production was running normally.
“Since we finished our annual maintenance work in December, we have been producing at full capacity, which will amount to 64,000 tonnes per year. May be our marketing and delivery team has failed in one way or the other, but our product should be on the market,†she said in a phone interview on Sunday.
The New Vision could not get a comment from other major producers.
The New Vision survey also found dealers hoarding sugar in an attempt to cash in on rising demand for the product during the festive season.
In some cases, used polythene bags are being used to package imported and substandard sugar, which is in turn sold to unsuspecting buyers at lower prices.Ends
SUGAR prices in and around Kampala have shot up, as traders are being over-whelmed by increasing demand from shoppers bracing for the festive season.
A mini survey carried out by The New Vision over the weekend, found 50 kilogramme (kg) bags of Kakira sugar being sold at sh70,000 each, up from sh65,000 earlier in the week.
Traders from both the new Taxi Park and Kikuubo, attribute the price increase to the failure of local producers to supply the growing demand for sugar on the market.
“It has become common that Kinyara and Lugazi sugar runs out of stock whenever there is any increase in demand. This only leaves Kakira sugar (left) on the market. As a result, prices shoot out of the roof due to lack of competition,†said a dealer in Kikuubo.
At Lugeye Trust Store, in the New Taxi Park, a 50kg bag of Kakira sugar was selling at sh68,000 and at sh67,800 for bulk purchases.
“We now have to negotiate with buyers in order to ensure that we do not incur losses, because prices can rise or fall any time,†said a dealer at the store.
He said they had not received any official communication from the producers about the situation or when it would be be rectified by suppliers.
At Luuka General Enterprises in Kikuubo, another dealer said that although a bag of Kakira sugar was selling at sh65,000 on Saturday morning, it had jumped to sh69,000 in the evening. She said they anticipate the price to go as high as sh75,000 for a 50kg bag by Christmas.
In retail shops in and around Kampala, sugar is selling at between sh1,500 and 1,700 per Kg.
Jane Bitek Langoya, the Kinyara Sugar Works Company Secretary, said that their production was running normally.
“Since we finished our annual maintenance work in December, we have been producing at full capacity, which will amount to 64,000 tonnes per year. May be our marketing and delivery team has failed in one way or the other, but our product should be on the market,†she said in a phone interview on Sunday.
The New Vision could not get a comment from other major producers.
The New Vision survey also found dealers hoarding sugar in an attempt to cash in on rising demand for the product during the festive season.
In some cases, used polythene bags are being used to package imported and substandard sugar, which is in turn sold to unsuspecting buyers at lower prices.Ends