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Soft drink lovers
will have dig deeper into their pockets to buy their favourite brand
following prices hikes. (Frederic Byumvuhore.)
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Sectors that use sugar as one of the key ingridients are in the red, following a surge of about 30 per cent in the prices of the sweetener. Sugar prices have been gradually going up since September, with a 50-kg bag now going for Rwf45,000 at depots, driven by huge shortages on the local, regional and international markets. Appolonia uwanziga examines the impact of the rise on local industries, especially bread makers and soft drink companies.
Gatabazi went to buy his favourite juice (Agashya) over the weekend and he was surprised to find the price had shot to Rwf4,000 a litre. The neighbourhood dealer had no clear explanation, only saying the wholesale price had gone up so he had to raise the retail price to make a profit.
Do not be surprised if you find the price of your favourite bread has shot up. Like juice and other soft drinks made using sugar, bread prices will go up any time, according to traders, because of the recent rise in sugar prices in the country. Sugar now costs Rwf1,000 per kilo in shops and supermarkets, up from Rwf800 at the end of October. This is an increase of Rwf200 or about 30 per cent, according to Augustine Shema, the chairman of the Bread Manufacturers Association.
Shema said the price of sugar has risen from Rwf35,000 per 50-kg bag in September to Rwf45,000 (as of last Saturday).
He said though the government scrapped taxes on sugar imports, the waiver has not helped the situation, noting sugar from the East African Community (EAC) is expensive. This has forced most importers to buy sugar from as far as Zambia and Malawi, and even Asia and the Americas.
“Sugar is more expensive in Uganda compared to Rwanda, so importers prefer to buy from Zambia or Malawi,” he said in an interview with Business Times over the weekend. Rwanda consumes over 100,000 tonnes of sugar per annum, most of which is imported.
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