Minister of Industry, Investment and Commerce, Karl Samuda, has said that although world market prices for sugar continue to increase, he is requesting that local manufacturers of juices and baked products not raise prices.

Samuda, who spoke yesterday in Kingston at the signing of a memorandum of understanding between Intercontinental Capital Worldwide and the ministry in relation to the Caymanas Economic Zone, noted that sugar prices were expected to rise in the short term but that currently, there were adequate local supplies.

"We will be doing everything to encourage producers to limit price increases. If there is no immediate shortage in local supply, they should be less aggressive in making increases," said Samuda.

The minister noted that the world market price of sugar increased from US12 cents per pound on April 6 to US23.15 cents on August 20. This translates to a 92 per cent increase in approximately five months.

Locally, he said that surveys by the Consumer Affairs Commission showed that brown sugar had an average retail price of $61.89 in January 2009 compared with $68.58 per kg in August 2009, reflecting a 10.8 per cent increase over the period.

However, most of this increase has been over the period March to August when the price moved from J$63.80 to J$68.58 per kg - an increase of seven per cent.

The price increases in sugar have been attributed to a decline in production in major producing and exporting countries. Some of those (such as India) that were net exporters are now importers.

Raw sugar needs supplied

Jamaica imports sugar from the world market.

Locally, Jamaica Cane Products Sales Ltd (JCPS) supplies 100 per cent of our raw sugar needs. JCPS only supplies 10 per cent of refined sugar to the domestic market.

Their ex-warehouse price of raw sugar increased by 28.8 per cent on August 19 to J$67,000 per tonne from J$52,000.

Consumers can therefore expect further increases as the product moves through the distribution chain, the minister said.

Samuda made sure to point out that such movements should not be exorbitant as long as supplies of sugar locally were adequate.

avia.collinder@gleanerjm.com