According to the Kulea Price Index, the sugar market in East Africa showed varying trends this week. Nairobi registered a 1.03% price increase (USD 8), while prices in Mombasa remained stable. In Mogadishu, the wholesale price for LQW sugar rose by USD 40 to USD 770 per ton, while VHP sugar prices stayed constant. Uganda saw a sharp rise in brown sugar prices, climbing from USD 647/MT in September 2024 to USD 823/MT by early October, a 27% increase driven by reduced cane deliveries and heavy rains disrupting production. Meanwhile, Kigali experienced a significant spike in the average price for VHP sugar, rising 16% from USD 870/MT to USD 1,013/MT, highlighting the volatility in the market.
In terms of import parities, Mombasa faced a negative import parity of USD -807 for sugar from the World Market due to unfavorable global market conditions. However, COMESA NON-FTA markets offered more competitive pricing, with a parity of USD -120. Nairobi’s import parity from the EAC market was recorded at USD -208, as the cost of sugar imports from neighboring countries rose significantly, making them more expensive compared to local production.
Port activities this week included the mooring of the CS Sarafina at Dar Es Salaam, where it is set to discharge 11,425 tons of refined sugar before proceeding to Mombasa to offload another 18,575 tons. Other vessels, such as Jupiter and Khaled A, were also moored at Port Sudan, bringing refined sugar from India and Saudi Arabia, respectively.
In conclusion, Nairobi saw a slight price increase due to fluctuating stock levels, while Mombasa remained stable. Kigali’s price surge was driven by the reduced supply of Ugandan brown sugar. The lowest sugar prices were observed in Mogadishu at USD 690, followed by Mombasa at USD 764. These trends reflect a complex interplay of local production challenges, weather disruptions, and shifting import dynamics within the EAC region.
Source: Kulea
Compiled by Victor Agut of AFA - Sugar Directorate