The South Africa Sugar Association (Sasa) has stated that the national price of refined and brown sugar will be increased to determine the price of sugarcane.
This price change will come into effect from August 31 and it will be increased by an average of 4.5%. The price may vary depending on the product and pack size.
Sasa issued a notice to industry players last month stating that it was necessary to adjust the price as the cost of sugarcane has increased due to overheads, transport, energy, distribution and other variables. Based on the variables including rand/dollar exchange rate and total sugar production as well as world sugar prices, the national notion price is fixed by Sasa. Some big mills and independent producers are allowed to set their sale margins based on their overhead costs.
Major sugar traders including Tongaat Hulett, Illovo and RCL sent a notification to the customers last month that the price of sugar would increase from 4.5% to 5.5% at the end of August.
Chris Engelbrecht, chairperson of the Sugar Importers’ Association of South Africa said that the retail prices would increase by over 7%.