Raw sugar prices to remain stagnant
Sugarcane is grown on a commercial scale in the south-eastern parts of the country

Sugarcane is grown on a commercial scale in the south-eastern parts of the country

The price of raw sugar is expected to remain stagnant at $517 per tonne due to the influx of cheap imports of the processed commodity, an official has said.

Commercial Sugarcane Producers Association of Zimbabwe chairperson Mr Tawanda Mafurutu said local prices have been subdued since the selling season started in response to cheap imports of refined sugar that are coming in from neighbouring countries.

Harvesting of sugarcane in Zimbabwe started in April this year and is likely to continue until December.

“We expect the price of raw sugar to remain at $517 per ton or even to go down,” he said.

The producer price of raw sugar is, however, largely determined on the global market and is subject to periodical review.

In the past, the price increased as the selling season progressed but this year prices have remained stagnant.

Mr Mafurutu said the stagnant producer price paints a gloomy future for local sugarcane growers.

Sugarcane is grown on a commercial scale in the south-eastern parts of the country which include Chisumbanje in Manicaland province and Chiredzi in Masvingo province.

Prior to the land reform programme in early 2000, sugarcane production was a monopoly of Tongaat Hullet, a South African company that still controls the milling and marketing of the crop in the country.

Some 15 000 hectares have since been allocated to 870 indigenous farmers who are producing about 20 per cent of national output.

Two large privately-owned estates Triangle and Hippo Valley comprise 28 494 hectares and produce about 80 percent of the sugar crop in Zimbabwe. – New Ziana.

You Might Also Like

Comments

Take our Survey

We value your opinion! Take a moment to complete our survey