B.S.I. Continues Call for Sugar Price Adjustment in Local Market

And, while the sugar industry is celebrating a record second payment, with an expected increase in the third payment scheduled for November, discussions over a price increase for sugar on the local market are still ongoing. Shawn Chavarria, the Director of Finance at B.S.I., says the price of brown sugar has not been adjusted for more than two decades. He contends that sugar associations must also add their voice to the call for government to approve a price adjustment.

 

Shawn Chavarria, Director of Finance, B.S.I./A.S.R.

“For us it has been a bit disheartening that the increase for sugar has not occurred, particularly for brown sugar which has not been adjusted for roughly twenty-three years. We have provided economic arguments as to why we think it is needed. We presented a very rational argument to government and it was from February last year that we did so. I think the associations will have to speak up as well if they want this to happen. From the mill’s standpoint our voice is not loud enough to pound government into action. Perhaps the associations might have to take up that effort. At the end of the day we do feel that is unfair that you have a product that has not seen a price increase for over twenty years when inflation for all the inputs that we use in the production process has gone up as much as fifty percent. We do believe the price should be adjusted and even in the price structure going forward there should be something for regular review so we don’t wait for twenty plus years to be revisiting prices and making adjustments. We appreciate that politically it is always going to be a difficult and sensitive thing to do. But if you have a structure in place to ensure that the review is done regularly, it would be easier to manage.”