A sharp decrease in the supply of sugar has been seen in the local markets suggesting that the prices of the commodity will increase in the coming days. Also there are some disagreements between traders and sugar companies over the causes of sugar shortage amid an upward trend seen in the prices in the global markets. Muhammad Al-Kulaibi, Director General of United Sugar Company, said Saturday that consignments to be sold during the holy month of Ramadan will reach distributors in time. He said the price per kilogram will remain at SR2.8. Distributors disagree stressing that companies have stopped selling sugar. They consider this action to be a first step towards increasing prices, which have leapt in wholesale transactions to SR3.2 per kg. Merchants described this step as “drying up the local market of sugar” in preparation for price hikes in the coming days and blamed some companies, which they said are not supplying them with basic foodstuffs. They complained that the new crisis has not been resolved, despite their recent intensive contacts with the companies. Ahmad Al-Zaher, a trader, said the companies decided a few days ago to stop selling sugar. He said the intention was probably to increase the prices, especially since the official price in the market is SR28 for a 10-kg bag while the wholesale price for the same quantity is now SR32. He demanded that authorities restore a balance in the market, especially since shortages will have negative effect on the consumers with the advent of Ramadan, a time when sugar consumption increases. Ali Ahmad, another trader, said the fact that big companies refuse to supply traders with sugar raises serious questions about what suppliers will do next, in the wake of negative impressions they have generated through their past actions. A source in one company who said the traders' accusations are unrealistic added that the problem is caused by a supply shortage. He added that prices in world markets are high and that it was premature to talk about increases because the national sugar company will set the prices in the coming days. The source stressed that the companies have no intention of drying up the sugar market and said there is a real crisis because there is no sugar in warehouses, which leaves companies without a reserve supply.
