By JUDITH NAMUTOWE – 

RESEARCH findings by the Consumers Unit Trust Society (CUTS) International Lusaka show that the prices of sugar in Zambia are higher than expected and do not reflect the high productivity in the sector.

The result confirms findings of other studies by other organisations, including the market regulators, which show that sugar prices are relatively higher than expected.

The report launched yesterday reveals that sugar prices in Zambia were relatively high despite production costs being comparatively low.

Unveiling the report to the local media in Lusaka, CUTS International Lusaka board chairperson Mike Muleba said the prices of sugar in Zambia did not reflect the cost advantages and high levels of productivity in the market.

Mr Muleba said the report presents original analysis of the Jesuit Centre for Theological Reflection (JCTR) basic needs basket to show that between June 2009 and June 2014 sugar prices in Zambia increased by K2.8 from K5.8 to K8.6.

He said it was not clear what factors were driving the rise in the prices of sugar which is an essential commodity.

He said there was need for Government and other industry players to address the anomaly because the commodity had adverse effects on household food security and the general population.

Mr Muleba said high sugar prices add to the cost of living pressures experienced by many Zambian.

He said that CUTS further argued that the fortification requirement could be a significant cost driver and a possible barrier to entry for prospective market entrants.

He said the Government should quickly move in and mitigate the rising price of sugar in an effort to address the effects, especially on the rural community.