ZSA refutes sugar shortage, price hike speculation

Oscar J Jeke

ZIM NOW REPORTER

The Zimbabwe Sugar Association has denied claims by the Confederation of Zimbabwe Retailers of the speculative price hikes by both wholesalers and retailers, arguing that the recommended shelf prices have not changed for all sugar brands in the country.

This comes as the Denford Mutashu-led CZR had raised concern in a statement of the speculative pricing of sugar on the local market, with reports of the commodity being priced at a high of US$4.00 (ZiG54) per 2kg packet despite the supplier price not having changed.

“CZR therefore implores the Zimbabwe Republic Police (ZRP) Licensing Inspectorate and the RBZ Financial Intelligence Unit (FIU) to pounce on all unscrupulous traders selling sugar above the RRP.

“It is our duty as the business community to come up with a healthy and sustainable pricing model for the benefit of the nation at large,” said CZR president, Mutashu.

In response, ZSA Chairman, Willard Zireva said that the speculation ends with the meaning of the word, as recommended unit shelf price of table sugar remains unchanged with prices ranging from US$2.60 for wholesale and US$2.76 for retail price of Sunsweet, with Gold Star white going for US$2.80 per two kg unit.

“The Zimbabwe Sugar Association advises all stakeholders and the general public that the recommended unit shelf price of table sugar remains unchanged at US$2.60 for wholesale and US$2.76 for retail of SunSweet, with Gold Star white sugar retailing at US$2.80 per 2kg unit,” said Zireva.

He also refuted claims of inadequate sugar stocks, while assuring the nation of the availability of adequate stocks for local consumption.

“The demand for sugar will spike as a result of the operating environment and speculative behaviour by some market players. However, despite these factors, the stocks on hand are adequate to meet normal local demand,” Zireva added.

Speculations on sugar prices had evidently increased in the informal sector owing to operating environment and speculative behaviour by informal traders.