Is a Price Increase the Solution to Sugar Smuggling?

Last week, we asked the Minister of Agriculture if the cost of sugar will increase to compete with prices in neighboring Guatemala and Mexico. He told us that B.S.I. has been requesting the increase, but they have not provided any justification for it. So, the Cabinet is yet to decide whether it will take that route to combat sugar smuggling. Well, Hugh O’Brien, the Lead Coordinator for the Commission of Inquiry into the sugar industry, believes that a sugar price increase is the perfect solution.

 

Hugh O’Brien, Lead Coordinator, Commission of Inquiry

“I mean the solution, the perfect solution to that will be a price adjustment, but that’s not an easy thing. And my own views on that is very different than a bit on the prime minister and my minister. To me, in my view, we should just allow sugar to be sold. Well, one, increase the price a little bit for the sugar that you have in the small bags. Plus this, what the Chinese man package and put in their small bags.  And then you have, sugar that B.S.I. and Santander are allowed to produce and package nicely and properly labeled and have it with whatever stickers and beautiful coloring and whatever they want to put and have that sold for whatever price people are prepared to pay for it. Have two sugar in the local market that way there’ll be never be a sugar shortage.”