This
site is designed for Internet Explorer and Netscape Navigator versions
4 and above and a screen resolution of at least 800x600
|
|
|
Sugar prices go up
By
Ephraim Munthali - 27-03-2003 |
|
|
A 42 percent slump in the value of the Malawi kwacha against the South African rand has forced the Sugar Corporation of Malawi (Sucoma) to increase the price of sugar by 12 percent with effect from Thursday.
This is the second price increase of Illovo sugar in eight months. In July last year, Sucoma increased the price by the same 12 percent after another 10 percent increase 10 months before.
During last year’s adjustment, the company said it did not envisage further upward adjustments unless there was a significant erosion of the kwacha.
“Unfortunately, the currency has now devalued since July, 2002 by 42 percent against the South African rand. Sucoma imports the majority of their materials [from South Africa],” said the statement.
It said the sugar manufacturer will continue to subsidise distribution to ensure that sugar is readily available at the factory price in strategic locations throughout the country.
Sucoma said the need for it to increase the subsidy has now become a priority and a necessity in the light of fuel increases this past year.
According to the company, about 70 percent of its expenditure is foreign currency based and as such tends to determine the cost of its products.
According to Sucoma’s price list, a 50 kilogramme bag of bulk brown sugar will now cost K40,560 inclusive of surtax while the same quantity of white sugar will be fetching K44,400.
|
|
|
|
|
|
