Can BSI’s Plan Fix Sugar Supply Issues?

Belize Sugar Industries (BSI) is addressing rising consumer concerns about limited sugar availability in supermarkets. For weeks, shoppers have faced restrictions of one or two pounds per purchase. This occurs despite BSI’s previous assurances of ‘no actual sugar shortage.’

Shawn Chavarria, Financial Manager at ASR/BSI, confirmed that as of this week, there are approximately 7.5 million pounds of white sugar and 2.2 million pounds of brown sugar in stock, sufficient to meet demand for the next three and a half months. Despite this, some retailers are still imposing limits.

Chavarria told News 5 today, “Somewhere along the supply chain, sugar is not consistently reaching the intended customers.” Investigations indicate that sugar smuggling may be worsening the perceived shortage.

To combat this issue, BSI has proposed introducing pre-packaged retail sizes for sugar. “That product will be much more difficult for anybody to try to smuggle,” Chavarria claimed. He noted that this packaging format has received positive feedback in the CARICOM market.

However, implementing retail packaging will require changes to the existing price control system. BSI is seeking government support to liberalise prices for packaged sugar while maintaining regulations for industrial sugar. If approved, packaged brown sugar could be priced around $1 per pound, and white sugar at about $1.10.