Its predicted that Kenya is set to experience the highest increase in Sugar in the next few months. Sugar prices increase will be due to import interruptions from India and Thailand.
Heavy rains have hit India which is a key supplier of Kenya’s Sugar. This has affected the exports due to the rains ravaging the crops in the country. This has therefore resulted to over 1000 local importers to be affected.
This will then limit the supply of sugar into the country that will result to higher demand. And higher demand with limited supply will cause price increase of sugar in the country.
India has already made the decision to cut her sugar export due to the El nino rains experienced in the country. This has been followed by a report by the United Nations Food and Agriculture Organisation (FAO).
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FAO has warned that there will be a 2 per cent global sugar production decrease in the 2023-24 season translating into 3.5 million metric tonnes. This decrease will affect developing countries (like Kenya) thus resulting to higher prices in 2024.
Low imports have already started to be felt and Kenya is turning to Uganda to cover the deficit. This has led to Uganda seizing the opportunity by increasing their sugar export price to Kenya. This means that the price burden will be placed on the consumers.
Currently, the kenyan market is selling a 2-KG packet of sugar at Ksh. 420 with the aid of Indian import. If india goes out of the picture, prices may hit Ksh. 500 and above. Setting a high sugar prices increase all time.
According to the Sugar Directorate, Uganda sells her sugar to Kenya at a 43% more expensive than India. If India completely stops exporting her sugar to Kenya due to the El nino reasons, Kenya will have to depend fully in Uganda. Thus the increase projected will hit the kenyan market within no time.