For the second consecutive week, wholesale sugar prices remained unchanged across major markets in Eastern Africa, according to Kulea's price trends. Mombasa experienced a slight price increase of 1.12% (USD 9 per ton), while the Southern market saw price movements driven by currency fluctuations. The apparent stability in Eastern African sugar prices is attributed to relatively stable currency exchange rates and good stock levels from local production.
In Kenya, the import parities for the week from all market sources, including the World Market and COMESA FTA, were unfavorable due to high landing costs for VHP sugar. Consequently, there were no vessels lined up for Kenyan ports, as validated by the Ken Trade Platform. However, Somalia continues to receive Brazilian VHP sugar, with two vessels currently en route to Mogadishu.
In Namibia, the government is considering introducing a sugar tax to reduce high sugar consumption and control obesity and related diseases. This proposed tax aligns with similar policies in Kenya, South Africa, and Zimbabwe. However, there are concerns from small traders and street vendors about the potential impact on their livelihoods due to increased costs.
Overall, the Kenyan sugar market experienced mixed trends, with a price increase in Mombasa and a slight drop in Nairobi, while the broader Eastern African market maintained stable prices. The improved production in the region has exerted downward pressure on prices, contributing to the observed stability.
Source: kulea.com