Why Sugar Prices Are Expected to Increase Further

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Kenyans are expected to buy sugar in the coming months at increased prices due to an acute shortage projected to hit the COMESA market.

According to Agriculture and Food Authority (AFA) Chairman Cronelly Serem, the shortage is attributed to the closure of the milling firms in the Western region.

Serem added that the shortage was due to the lack of proper cane development programs and unpredictable rains.

The drought had also affected production within the COMESA market leading to the gaps in supply of the commodity in the country.

Sugar is displayed in different sacks ready for sale. Photo/ Bizna Kenya.

Serem said the country imports 282,000 metric tonnes of sugar annually from the COMESA region.

However, since January, the companies licensed to import have only managed 85, 000 metric tonnes.

“We will continue to experience a shortage of the commodity on the shelves since there is no sugar in the COMESA region,” he stated.

Despite the projected shortage, Serem insisted that the milling ban was still active.

“No miller shall be allowed to crush cane in this region because the sugarcane is immature and has low sucrose level which will not be beneficial to the millers and the farmers,” he said.

Even though three companies from the area have applied to Afa to be allowed to crush, he said a technical team shall be dispatched to assess the cane as requested by the firms before giving the green light to crush.

“When we open in December we expect them to start crushing gradually until June when they can go full scale,” he stated.

Currently, a 2kg packet of sugar retails at Ksh400 depending on the brand. With the projected shortage, the price can cross Ksh450.

 

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