Price Hike Expected To Improve Sugar Supplies

Sugarcane farmers have justified the doubling of sugar prices by sugar producer, Tongaat Hulett Zimbabwe (THZ) saying the prices still remain the lowest in the region, with the price adjustments expected to improve supplies.

Zimbabwe Sugarcane Farmers Development Association chairperson, Edmore Veterai said that the production costs had gone up, necessitating the price hike. He said:

An example is that as sugarcane growers, input costs have gone up and it is pegged at US$500 to produce a tonne and when we sell that tonne we only get an equivalent of US$273.

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So how do we expect us to produce when the production cost is more? We are selling our sugarcane at a price which is below the production cost.

In a statement on Tuesday, THZ announced that the new sugar prices are with immediate effect.

The latest prices are as follows: a 1kg packet of brown sugar has been pegged at $63,84 from $32,58 while a 2kg packet is now costing $127,68 from $65,17. A 5kg packet of brown sugar is now selling for $319,20, while a 10kg at $638,40.

A 1kg packet of white sugar, according to Tongaat Hulett is now $67,21 from $34,29, while for a 2kg packet is $134,42 from $68,57.

The price of a 5kg packet has been pegged at $336,04, while a 10kg packets now cost $672,09.

More: The Herald

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Price Hike Expected To Improve Sugar Supplies