Sugar price rises by one hundred percent in Ethiopia

By Simegnish Yekoye

ADDIS ABABA, Ethiopia- The price of sugar has risen by 100 percent within a week’s time in Ethiopia, and as accusations fly between wholesalers and merchants, consumers have balked at purchasing the commodity, businessmen in Addis ababa disclosed.
According to shop owners and retailers, the price of sugar used to be 530 birr per quintal and has doubled to 1,000 birr per quintal just this past week.
Assefa Hailu, a trader around 22-mazoria, said that the price first shot up to 725 birr ten days ago and is now 1,000 birr.
“It has been more than a week since the price went this high, and it hasn’t shown any sign of declining,” Assefa said.
Another shop owner, Jemal Mohammed, says he has been forced to increase the price because the wholesalers in Merkato are selling the sugar for 920 birr per quintal for reasons he is unaware of.
“No one tells us why the price showed this sudden rise,” he said.
Some traders have complained that the government affiliated Merchandise Wholesale and Import Trade Enterprise (MWITE), which is the only wholesaler that is distributing sugar at the previous low price, is refusing to sell to some traders and is enforcing a requirement of 500,000 birr initial capital.
However, the general manager of MWITE, Yemam Mohammed, says that the enterprise is distributing sugar at 497 birr per quintal equally for all traders without any preconditions.
Accordingly, the enterprise is also wholesaling four kilos maximum of sugar for individuals and 2-3 quintals for traders and organizations.
“We are giving those merchants a reasonable price here, so they should bring the price down to a fair one,” says Yemam.
If the price doesn’t show any decline in a few days, MWITE has planned to distribute sugar through kebeles (villages) and government offices to reach society directly, adds Yemam.
The general manager says that they can’t say for sure that there is a shortage of sugar production. “We have the same amount of supply from the factories, at 450 birr per quintal, and we are selling it for 497 birr. So there should be no way to take the price that high and we suggest they sell it for no more than 525 birr.”
But Yemam says that some traders might hold some products with speculation of the right time they can get the best price, and adds this is wrong and urges the merchants to be fair to the public.

Shop owner Jemal says the sudden high price increment has affected his business aversely and he is losing regular customers. “Customers are now abstaining from buying sugar as it is too expensive for them.”
Zenash Maseresha, owner of a cafeteria around Bole, says she couldn’t buy the 30-kilos of sugar she usually buys each week. “I used to pay 159 birr for the 30 kilos, but now the cost went up to 300 birr per week, which will make it 1200 birr per month,” Zenash says. She adds that since she can’t afford to pay this much she is forced to buy only 12 kilos per week.
Jemal says the loss of customers has also made him hold back from purchasing the usual amount of sugar from wholesalers. “I only buy 100 quintals, which is much less than what I used to buy,” he says. “Even for the 100 quintals I am purchasing I am worried that the price might suddenly depreciate and I will lose my money. Many traders have stopped purchasing sugar until the price falls.”
This sudden price hike has also affected cafeterias and restaurants that serve tea, coffee and other foodstuffs. A customer at one cafeteria said everything in several cafeterias has increased by 0.25 cents, including soft drinks.