Government Moves to Raise Sugar Prices Amid Farmer Struggles

Sugar prices in Belize are about to change, and it’s been a long time coming. The last increase for brown sugar was way back in 2001, and for plantation white, nine years ago in 2016. Chairman of the Sugar Industry Control Board, Marco Osorio, says the government is convinced a hike is necessary. Why? Because farmers have been struggling with skyrocketing production costs, climate challenges, and even a disease affecting sugarcane. Osorio admits the increase could put pressure on consumers, but says it’s about balancing the scales for cane farmers who’ve been waiting decades for relief. The exact new prices for packaged sugar? Still under review, as officials work to minimize the impact on households while boosting industry revenues.

 

On the phone: Marco Osorio, Chairman, Sugar Industry Control Board

“This has been work in the making for at least two to three years where the industry had seen the need for government to regulate the price of sugar and, more than that, increase the local price of sugar, particularly both sugars, brown and plantation white sugars. The last increase to brown sugar was made in 2001. So, that’s twenty-four-years ago, and then plantation white was increased in January 2016. So, also, we are looking there at about nine years ago. So, in all, from 2001 and even 2016, to present, we all know inflation changes the prices of goods and services and agro-inputs. In terms of the farmers side, the cost to produce one ton of sugarcane has almost tripled over this time period. So, farmers are due any benefits in terms of by way of price increases for local sugars. Yes, we are very aware that the mill has not provided all the details, in terms of what it is costing the mill to produce one pound of sugar. But, at the end of the day, I think government is convinced that there is a need and it is due. Yes, we are very aware that this may cause a burden on our local consumers, but at the same time our cane farmers have been battling with higher prices in agro-inputs, the changes in climate, and also, most recently, as we all know the matter of fusarium welt in sugarcane. So, all in all, I think government has made a wise decision. It is important also to mention that the decision, in terms of what will be the increase and what would be the new prices on the regulated sugar. In terms of packaged sugar, retail packaged sugar, that is yet to be decided. There is still more work to be done in terms of analysis, looking at the numbers to ensure that there is not a major impact on our local consumers, while the industry gets some kind of a benefit in terms of increasing revenues for the sale of sugar.”