Special Sugar Price Concessions for Large Manufacturers

As Belize Sugar Industries rolls out packaged sugar at a higher price, the big question is who will feel the pinch. From beverage producers to bakeries and restaurants, major sugar users are watching closely, wondering if higher costs could soon trickle down to consumers. Government says while prices will be driven by the market, special concessions are already in place to protect industries that depend heavily on sugar. Minister of State in the Ministry of Economic Transformation, Dr. Osmond Martinez, explains how those negotiations are unfolding.

 

Dr. Osmond Martinez, Minister of State, Ministry of Economic Transformation

“It requires an additional operational cost to do it. And sometimes the resorts and other industries would’ve preferred that, rather than have anyone at the, at any store, local store, just maybe using a little scoop and get out the sugar and put it in plastic bag. So that one has a different price range and that practically will be controlled by, that’s the freedom of the market that will dictate the pace.”

 

 

 

Shane Williams

“Will there be any concessions for industries that require large use of sugar? In terms of the sugar, the price increase?”

 

Dr. Osmond Martinez

“Well we have one who is the largest consumer of sugar, Bowen and Bowen. There is a clause within the protection of the industrial – the industrial cost or the industrial sugar, the cost of it. I think there is some, a clause within the cabinet document. Nonetheless, there also give that freedom to negotiate between the two parties, in this case, Bowen and Bowen and BSI-ASR. I know they do have a contract presently and we are hoping that both parties will be able to move forward either in the same conditions or better conditions as they move forward.”

 

Government says talks are ongoing to make sure big sugar users aren’t hit too hard by the higher prices, as BSI moves ahead with packaged sugar for the local market.