Consumers to pay higher prices for sugar

     Beginning January 16th 2006, consumers will pay higer prices for brown and white sugar. These increases have become neccessary as a result of increases in the world market prices for these commodities.

The Dominica Export Import Agency (DEXIA) announced today that effective Monday 16^th January, consumers can expect to pay more for brown and white sugar.  According to the release, brown sugar will now be retailed at EC $0.90 per lb and EC$1.04 per lb of white sugar.  The wholesale price of white sugar is now set at EC$49.75 per 55 lb bag and EC$99.25 per 110 lb bag.  Norman Dorival, Manager of DEXIA’s Commercial Department said the increases have become necessary as a result of “substantial increases in the price of white and brown sugar on the world market.”  DEXIA is now expected to purchase white sugar at US$510.00 per metric tonne, a 40% price hike on its last contracted arrangement.    The Agency is also purchasing brown sugar at higher world market prices. 

Prices for the essential commodities of rice and sugar have remained relatively stable over the last nine years.  DEXIA has been subsidizing local market prices absorbing huge losses in the process.  Sources close to DEXIA say the situation has become untenable forcing the Agency to review its pricestructure.  It is unlikely however that the new prices will spark any negative reaction from consumers.  According to Dorival, “the 9% and 2.5% increases in the price of white and brown sugar are way below their open market values

Despite increases in the world market prices for rice, the prices at the supermarkets and local grocers will remain unchanged.