Sugar prices increase

Consumers in the country are digging deeper into their pockets to afford sugar due to soaring prices.

Friday, April 11, 2008
Making tea.

Consumers in the country are digging deeper into their pockets to afford sugar due to soaring prices.

In Bugesera district, sugar has increased from Frw650 to Frw800 per kilogramme. While some shops in Kigali City are selling it at Frw1,000 each kilogramme.

State Minister for Industry and Investment promotion, Vincent Karega attributed the increase to shortage of sugar on the market.

He said currently Kabuye Sugar Works, the only sugar producing company in the country is not producing to full capacity.

But some shop owners attribute the price increase of sugar to the high transport costs. When fuel was hiked, transporters too hiked the transport fares, the traders said.

Before fares were hiked businessmen  used to pay between Frw1,000 to Frw1,500 for a 50 kilogramme sack but now transporters nut the transport costs have doubled.

Jeannette Mukakamana, who sells tea and milk in a small restaurant in Nyamata, is worried thatn the  high sugar costs may drive her out of business.

"Frw800 per kilo will also increase the price of tea from Frw 100 to Frw150-200 per small cup. And this I am sure will scare way my customers,” Mukakamana said.

She said that most of her customers are students and casual labourers who may not manage to pay that money.

Ends