Tweet
Prices of baked products to rise as sugar cost increases
Thursday, 20 August 2009
Consumers have been told to brace for a sharp increase in the prices of baked products.
It is reported that shoppers will see an upward movement within a matter of days.
The Jamaica Bakers Association says prices are going up in light of the dramatic rise in the cost of sugar.
Immediate Past President of the Association, Jerry Chambers, says bakers have no choice but to pass on the increase to consumers.
"I think there is going to be a big price increase especially in sweet goods in which sugar is a major factor because 28 and a half percent increase at one time is significant," Mr. Chambers said.
According to Mr. Chambers, some bakers have already started to mark up their prices.
He says the increases will vary but will be significant.
As was first reported by RJR News Wednesday an astronomical increase in the price of sugar on the world market has driven up the cost of the commodity locally.
The price skyrocketed from $2,600 per bag to $3,350 Wednesday as world sugar prices surged to a 28 year high.
Growing demand in Brazil for sugar cane to be turned into ethanol, coupled with a sharp fall in Indian production, have been blamed for the sharp price rise.
And at least one local official says the price of sugar could climb even higher.
However, he is urging consumers not to panic.
Executive Chairman of the Sugar Industry Authority, Ambassador Derrick Heaven, says based on current trends in the world market, sugar prices are not expected to ease at this time.
"It's difficult for me to say exactly how the market, a very volatile market, will react over the next few weeks but the trend has been for increased prices. We have adequate stocks of sugar to last us for a considerable time. Whenever we have to import again I suspect that the prices are going to be higher," Ambassador Heaven said.
<span style="font-weight: bold">Jamaica has to import sugar to meet local demand as all of the sugar which it produces is exported</span>.
Thursday, 20 August 2009
Consumers have been told to brace for a sharp increase in the prices of baked products.
It is reported that shoppers will see an upward movement within a matter of days.
The Jamaica Bakers Association says prices are going up in light of the dramatic rise in the cost of sugar.
Immediate Past President of the Association, Jerry Chambers, says bakers have no choice but to pass on the increase to consumers.
"I think there is going to be a big price increase especially in sweet goods in which sugar is a major factor because 28 and a half percent increase at one time is significant," Mr. Chambers said.
According to Mr. Chambers, some bakers have already started to mark up their prices.
He says the increases will vary but will be significant.
As was first reported by RJR News Wednesday an astronomical increase in the price of sugar on the world market has driven up the cost of the commodity locally.
The price skyrocketed from $2,600 per bag to $3,350 Wednesday as world sugar prices surged to a 28 year high.
Growing demand in Brazil for sugar cane to be turned into ethanol, coupled with a sharp fall in Indian production, have been blamed for the sharp price rise.
And at least one local official says the price of sugar could climb even higher.
However, he is urging consumers not to panic.
Executive Chairman of the Sugar Industry Authority, Ambassador Derrick Heaven, says based on current trends in the world market, sugar prices are not expected to ease at this time.
"It's difficult for me to say exactly how the market, a very volatile market, will react over the next few weeks but the trend has been for increased prices. We have adequate stocks of sugar to last us for a considerable time. Whenever we have to import again I suspect that the prices are going to be higher," Ambassador Heaven said.
<span style="font-weight: bold">Jamaica has to import sugar to meet local demand as all of the sugar which it produces is exported</span>.
sugar, rum, coffee,
Comment