Consumers continue to face higher sugar prices despite earlier projections suggesting a decrease following an increase in sugarcane production. A recent spot check across major retail stores in the city reveals that sugar prices have risen by up to Sh20 compared to a few months ago.
For instance, a two-kilogram packet of Kabras sugar is now retailing at Sh269 in some stores, up from an average of Sh250 in August. At Quickmart, two-kilogram bags are priced between Sh249 and Sh269, depending on the brand, while Naivas lists all brands at Sh259. Carrefour offers a pack of Mumias Sugar at Sh283, with its lowest-priced economy white sugar available for Sh249.
Interestingly, despite this price increase, monthly statistics released by the Agriculture and Food Authority’s sugar directorate indicate that factory prices for sugar have decreased, which should ideally lead to lower retail prices.
According to the sugar directorate’s market update for September, “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.” Additionally, wholesale prices averaged Sh5,367 per 50 kg bag, a 1% decline from Sh5,424 per 50 kg bag in August 2024.
In terms of retail prices, sugar averaged Sh136 per kilo in September, down from Sh141 in August. During the review period, the total production of mill white and brown sugar reached 7,491 tonnes, while white refined sugar amounted to 27,935 metric tonnes.
Although total sugarcane milled in the country saw a slight decrease of 0.4%, reaching 796,851 metric tonnes (MT) compared to 800,286 MT in August, sugar production itself increased to 73,634 tonnes, up from 73,409 tonnes the previous month. The industry’s average cane-to-sugar ratio improved marginally to 10.82 in September, up from 10.9 in August.
Total bagged sugar production also rose by 1%, climbing to 73,818 tonnes from 73,386 tonnes in August. Over the nine months leading up to September, total sugar production reached 615,499 MT, marking a substantial 65% increase from 374,119 tonnes during the same period last year.
Conversely, sugar sales in September declined by 9%, falling to 76,688 tonnes from 84,037 tonnes in August. By the end of September, factories reported closing stocks of sugar at 21,255 tonnes, down from 24,376 tonnes at the end of August. Additionally, molasses production dropped by 4%, totaling 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.
