admin
The Rhodesia Herald, December 30, 1977
SUGAR goes up two cents a kilogramme today – the second such increase in six months.
A spokesman for the Ministry of Commerce and Industry said yesterday the new prices would allow the industry to recover part of the increased production and distribution costs on the local market.
The retail price of the 1kg pack of Sunsweet sugar has risen from 20 cents to 22 cents. The prices of larger packs will rise in proportion.
The following price increases apply to refined white sugar:
- 500g rises from 7cents to 7½c.
- 500g rises from 14 cents to 15c.
- 1kg rises from 26cents to 28c.
- 2kg rises from 51 cents to 55c.
In September the Rhodesia Sugar Association announced it was seeking Government approval for higher sugar prices.
Sugar has risen sharply in price this year with sales tax imposed for the first time in March and the two price increases of July and yesterday.
A 1kg pack of white sugar cost 24 cents at the beginning of the year and now, with sales tax, costs 32 cents, an increase of a third.
Sunsweet costs nearly 40 percent more. The 1 kg pack cost 18 cents in January and now costs 25 cents with sales tax.
LESSONS FOR TODAY
- The increase in sugar prices per kilogramme was primarily driven by the need for the sugar industry to offset rising production and distribution costs amidst a challenging economic landscape marked by inflation and political instability.
- The Ministry of Commerce and Industry indicated that the price hike was necessary to help the sugar industry recover from increased production costs.
- These costs could stem from various factors such as rising labour expenses, higher prices for raw materials, or increased energy costs associated with sugar processing.
- Distribution costs also play a crucial role in determining market prices. In a country facing logistical challenges due to infrastructure issues or political unrest, transportation of goods can become more expensive.
Online Reporter