By: Omar Silva, NP Staff Writer

Belize City: Sunday, 5th March 2023

Belize Sugar Cane Producers Association and the Progressive Sugar Cane Producers Association recently proposed an increase in the prices of brown and plantation white sugars, citing inflation and rising transportation costs. The last adjustment in cost for plantation white sugar was made in 2015, while brown sugar has maintained a controlled retail price of thirty-nine cents per pound since 2001.

The Belize Sugar Industries (B.S.I.) responded to the request by stating that an increase in the cost of brown sugar is necessary due to the rising cost of production and the fact that brown sugar is sold at higher prices in neighboring countries. B.S.I. argued that the current controlled price is below the world market price for sugar and below the cost of production. They proposed an adjustment from thirty-nine cents to sixty-five cents per pound, with farmers seeing an improvement in cane price of about a dollar per ton of cane.

However, Prime Minister John Briceño declined the proposal, stating that an increase in sugar prices would have a significant impact on low-income families. He noted that the retail price of basic items is already three times the controlled price of brown and plantation white sugar, and he does not want to add additional burdens to consumers. The Belize Sugar Cane Farmers Association also opposed the proposal.

The potential impact on consumers is an important consideration in this debate. While an increase in sugar prices could benefit farmers and the sugar industry, it could also lead to higher prices for consumers. Brown sugar is already being sold at a higher price than the controlled retail price in supermarkets, which suggests that an increase in the controlled price may not necessarily translate to a lower price for consumers. However, an increase in sugar prices could also lead to cross-border contraband, as seen with plantation white sugar in the past, which could ultimately harm the local sugar industry.

Overall, the debate over sugar prices highlights the challenges of balancing the interests of the sugar industry, farmers, and consumers. While an increase in sugar prices could benefit some stakeholders, it could also lead to unintended consequences for others. As such, any decision on sugar prices should carefully consider the potential impact on all stakeholders.