Continuous increase in sugar prices in the Kingdom are threatening the confectionary, juice and beverage industries as Ramadan approaches. Some small factories have had to reduce production and others had to shut down following a recent 15 to 20 percent spike in sugar prices. Some restaurant and confectionery store owners are worried that there will now be less production of Ramadan desserts, especially ‘kanafah'. A source at the United Sugar Company (USC) said that the increase is due to climate changes which have ruined many sugar cane harvests, Al-Madina Arabic daily said. Muhammad Al-Kulaibi, USC executive director, said the Kingdom does not impose customs duties on imports of sugar and that sugar prices change when global prices change. “Large amounts of sugar cane products have been ruined by changing weather conditions and this has resulted in reduced sugar sales in global markets.” The Ministry of Commerce and Industry is exerting painstaking efforts to monitor prices and protect consumers, added Al-Kulaibi. Confectionery owners have attributed the spike to the reduction of Saudi sugar imports from some major sugar-producing countries. Moreover, there has also been a rise in shipping costs of raw sugar in nearby markets. There was a marked difference in sugar prices in Jeddah retail stores Sunday. A 10- kg sugar sack cost between SR39 and SR44 while a 45-kg sack ranged between SR185 and SR192. Muhammad Shafiq, who works at a big supermarket in Jeddah, said that the price of sugar skyrocketed 25 percent and the price of a 10-kg sack is now SR46. “Sugar prices will increase in Ramadan because people love to eat desserts like Kunafa, Basboosa, Qatayef, Baklawa, Umm Ali, jelly, cream and caramel and they love to drink different juices.” Ali Al-Malki, a fresh juice store owner, said that “the spike in sugar prices threatens our profit margins. Some store owners had to shut down their businesses because they could not afford the high price of sugar. Added to this they have to pay rent and salaries of employees”.
