Economy

Sugar import has produced its effects

Sugar price has gone down since the start of June. This decrease is due to the import of 7.000 tons of sugar and the increase of SOSUMO supply to the market.

The sugar stock of “International shop”

The sugar stock of “International shop”

”Now I am allowed to buy any quantity of sugar that I need without any condition”, says gladly Rose Ndayisenga, a woman met at “Au bon prix” supermarket located in Bujumbura city. She says the situation has improved comparably to last month. “Before prices fell, customers were allowed to buy sugar only between 1O and 11 a.m.”Sometimes, a customer could go back empty handed, she adds.

“Customers come in dribs and drabs”, adds a clerk of the supermarket. She says the number of sugar consumers has considerably decreased. She adds that one kilo of sugar is bought at BIF 2350. She also says they no longer limit the quantity of sugar customers should take.

She explains the price decrease by the supply of sugar to many shops of the town. Customers prefer to buy it near their home.

Gérard Nkeshimana, a man met at “International shop” rejoices over the availability of sugar at the market. He has abandoned that product due to its high cost and scarcity. He says the manager obliged him to buy another item of at least BIF 1000 in order to buy sugar in May. He says, however, the low price will not last long.

Anaclet Gahungu, the manager of “International shop” says sugar is currently sold at BIF 2500 against BIF 2650 two weeks ago. “Today sugar is sold without any condition.”

He explains that a bag of 50 kilos cost BIF 115.500 to those who get it from the Moso Sugar Company- SOSUMO.
However, he deplores the profit margin of BIF 3.000 per each bag of 50 kilos. He says his shop gets regularly a tone of sugar per month.

Jean Claude Gahungu, a shopkeeper at Carama area says a kilo of sugar costs BIF 2500 against BIF 3200 a week ago. He explains this decrease by the reduction of the cost price from BIF 150.000 to BIF 115.000. He says buyers have increased at 100%.

Combination of two factors

According to Aimable Nkezumwami Assistant to the Minister of Trade, the decrease of the price of sugar is due to the increase in sugar supply by SOSUMO. He also says the Government has imported 7000 tons of sugar in order to add to the national production that does not satisfy the local demand.

The Assistant to the Minister says, however, that the quantity of sugar that was expected to be at the market for the month of June has been increased at 50%. He hopes that the decrease will remain. He also says the 2017-2018 harvest campaign will start by the end of June. He reminds the retailers that the price of 1kilo of sugar is BIF 2,340.

Freddy Mbonimpa, Mayor of Bujumbura city, says the decrease of the price of sugar is due to the good collaboration between the administration and the wholesalers who get sugar from SOSUMO. He says sugar is abundant in the capital: “The quantity of sugar that was expected to be consumed in the month of May has not been totally used.” He reveals that some dishonest traders have been withdrawn from the list of wholesalers. However, 100 tons have not been withdrawn from SOSUMO so far. He also recommends executive to remain vigilant so that sugar may not be used in the production of prohibited drinks.