'Increase in sugar prices unwarranted'

THE Confederation of Zimbabwe Retailers (CZR) has expressed concern over speculative pricing of sugar on the local market.

In a statement yesterday, CZR president Denford Mutashu said the recent surge in sugar prices was unwarranted given that suppliers' prices have not increased.

Mutashu said the recommended retail price ranged from US$2,60 (ZiG 33,75) to US$2,80 (ZiG37,80) for 2kg of both brown and white sugar.

He, however, said the sugar was currently selling at US$4 (ZiG54) per 2kg despite the supplier Zimbabwe Sugar Sales (ZSS) price not having gone up.

"CZR, however, notes with dissatisfaction the number of widely branch networked retailers and wholesalers struggling to access product supply from the supplier," he said.

"This situation must be fixed to reduce seemingly arbitrage pricing in the market emanating from the informal sector. There are ongoing engagements with ZSS to ensure supply into formal channel retail and wholesale stabilises and all delivery backlogs are cleared.

"CZR therefore implores the Zimbabwe Republic Police Licensing Inspectorate and the Financial Intelligence Unit to pounce on all unscrupulous traders selling sugar above the  recommended retail price."

Mutashu said it was the duty of the business community to come up with a healthy and sustainable pricing model for the benefit of the nation at large.