Sugar prices up as RTGS$ value depreciates

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    Harare – Sugar prices have shot up as much as 97 percent to $10.44 for a 2kgs refined white sugar on Monday as price shock continue trending on the back of acute shortages foreign currency and high exchange rates.

    In a notice on Monday published by the country’s largest sugar processor, Tongaat Hullett, the retail price of 10kg white sugar has moved up to $52.20 while wholesale price is now $48.84.

    Similarly retail price for brown sugar went up to $9.98 and $49.90 for 2kg and 10kg respectively. The recommend wholesale price for 10kg is now $46.56/case.

    Given the fact that the determination of prices of most basic goods and commodities are exposed to the exchange rate, the continuous weakening of the local RTGS$ dollar against the US Dollar is likely to push inflation further upwards which reached 75 percent in April.

    The shortage of foreign currency has also made it considerably more difficult to acquire raw materials for production of most basic goods and commodities resulting in high cost of production and also creating product supply gaps.

    Meanwhile, government has blamed some retailers and suppliers of engaging in profiteering tendencies calling some of the price increases unjustified.

    Grain Millers Association of Zimbabwe has since vowed to move around the country monitoring prices of basic commodities to protect consumers from being short-changed by “unscrupulous” retailers.

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