Consumers to pay Higher Prices for Brown Sugar
David Vital
Market Development Officer: Communications – manages DEXIA’s public relations, corporate communications and produces its newsletter and radio programme. Has been Officer In Charge of the Market Support Services Department for the past 13 months. . (View all blogs by David Vital...)
DEXIA announced in July that with immediate effect, consumers would have to pay slightly higher prices for Brown Sugar.
The new wholesale price is set at EC$92.00 per 110lb bag, an increase of EC$4.00 per 110 lb bag. Consequently, the new recommended retail prices are EC$1.00 in area 1, EC$1.04 in area 2, EC$1.08 in area 3 and EC$1.12 in area 4.
Norman Dorival, Manager of DEXIA’s commercial operations says the increases became necessary since the Agency was now “paying higher prices for the commodity on the world market.” DEXIA contracted Brown Sugar at US$492.50 per metric tone during the first half of 2009, but the price had jumped to US$529.50 by July, an US$37.00 increase.
Notwithstanding the small increases, the Agency’s speculative buying has resulted in considerable savings to the consumer. “If we did not contract in February/March” says Dorival, “we would easily be buying Brown Sugar at US$600.00 and White Sugar at US$700.00 per metric tone.” In fact, casual comparisons show that sugar prices in Dominica are “better than and or at least on par with that which obtains in the sub region.
Furthermore, local prices are not expected to increase during the rest of the year since the Agency has contracted Brown and White Sugar up till December. As a result of poor weather conditions in the top producing countries of Brazil and India and speculative fund buying, sugar prices are expected to remain higher throughout 2010.
Wholesale and retail prices for rice, DEXIA’s other product, aren’t likely to increase over the next six months either.
The new wholesale price is set at EC$92.00 per 110lb bag, an increase of EC$4.00 per 110 lb bag. Consequently, the new recommended retail prices are EC$1.00 in area 1, EC$1.04 in area 2, EC$1.08 in area 3 and EC$1.12 in area 4.
Norman Dorival, Manager of DEXIA’s commercial operations says the increases became necessary since the Agency was now “paying higher prices for the commodity on the world market.” DEXIA contracted Brown Sugar at US$492.50 per metric tone during the first half of 2009, but the price had jumped to US$529.50 by July, an US$37.00 increase.
Notwithstanding the small increases, the Agency’s speculative buying has resulted in considerable savings to the consumer. “If we did not contract in February/March” says Dorival, “we would easily be buying Brown Sugar at US$600.00 and White Sugar at US$700.00 per metric tone.” In fact, casual comparisons show that sugar prices in Dominica are “better than and or at least on par with that which obtains in the sub region.
Furthermore, local prices are not expected to increase during the rest of the year since the Agency has contracted Brown and White Sugar up till December. As a result of poor weather conditions in the top producing countries of Brazil and India and speculative fund buying, sugar prices are expected to remain higher throughout 2010.
Wholesale and retail prices for rice, DEXIA’s other product, aren’t likely to increase over the next six months either.