Photo: Stores all across the country are rationing the sale of brown sugar. Plantation white is mostly unavailable.
Hon. Jose Mai: “Sugar quantities are dangerously low.”
BELIZE CITY, Wed. Dec. 13, 2023
Across the country, store shelves are bare where sugar used to be, or the space is stacked with other products. Where there is brown sugar, even that is now being rationed at some establishments. With pressure mounting on the Government to resolve the ongoing sugar shortage countrywide, Cabinet this week actually considered the importation of 600 tonnes of plantation white sugar. The figure is the projected shortage in meeting local demand for the period after Christmas and until around January 10, 2024, when sugar production is expected to resume at Tower Hill, taking into consideration the December 28th start of the crop. Minister of Agriculture Jose Mai confirmed to Amandala today that after a visit of officials from the Ministry of Agriculture, Food Safety and Enterprise to the BSI/ASR warehouse on Tuesday this week, they confirmed that we only have enough sugar to last through to Christmas. He declared, “Sugar quantities are dangerously low.” Marcos Osorio, Chairman of the Sugar Industry Control Board (SICB) qualified the Minister’s statement, revealing that even the available sugar in the warehouse still has to be rationed to meet local demand until Christmas.
Osorio divulged that countries being looked at for importation are Guatemala, Colombia and Brazil. He says one entity offered to import sugar from Florida, but he noted that the cost would be US 60¢ per pound plus freight, landing, and distribution which would take the price to between $1.75 and $2.00 per pound. Osorio proclaimed that would be unbearable for Belizeans. For his part, Minister Mai indicated that if they must free up Santander Sugar to sell locally, it must be carefully considered. If the Government proceeds with the importation option, the indication is that costs would have to be subsidized.
With the visit to the miller on Tuesday, Osorio and the Controller of Supplies, Lennox Nicholson, confirmed that the sugar shortage is not a manufactured one. It’s not that Belize did not produce enough sugar for the local market; but rather, this year there has been an increase in local sugar purchases. The miller usually reserves 10,000 tonnes for the local market based on trends in demand. However, for this year, 2,000 tonnes more had been sold compared to the same period last year. It is all compounded by the fact that global production last year was less, and Belize, Mexico and Guatemala were not spared. Osorio shared that BSI currently has in stock 6,000 tonnes of brown sugar but only 500 tonnes of plantation white. Local weekly consumption is 170 tonnes of which 20 tonnes is brown sugar. That is separate from a total of 80,000 tonnes of plantation white which is earmarked for Bowen & Bowen to be allotted on a weekly basis. Authorities believe the local unavailability of sugar is due to contraband to Mexico and Guatemala where the sugar price is two to three times that in Belize. According to those figures, Osorio says the margin of profit per sack would be $50 or more.
Osorio has also sounded the alarm that he expects the problem will continue. He said people in neighbouring countries are trying to get Belize sugar, and shared that many have called him from all over the country asking, “What can I do to get sugar? I have a buyer in Guatemala.” Additionally, the information of sugar officials is that a couple millers in Mexico will not be milling this season because of production loss due to drought, which will further drive up demand there.
Osorio has indicated that Belize’s supply was exhausted by August. He believes that at that point, BSI, which is the only seller in Belize, should have sounded the alarm. His opinion is that the number of wholesalers that BSI sells to needs to be reduced so that there is more control. He also questioned if it is time for Government to decide who controls the local sale of sugar.
The miller has been calling for an increase in the price of sugar, but Cabinet has not responded favourably, given that Belizeans are already suffering due to inflation. The Prime Minister, however, has conceded that “the sugar industry is subsidizing the price of sugar in Belize.”
In the meantime, the Prime Minister and Minister Mai say that authorities have been asked to crackdown on the contraband of sugar as a permit is required for export. Anyone found to be in contravention will be fined.
Osorio says bakers have started blending brown and white sugar for their products.
For historical context, we note that in 2018, Bowen & Bowen was blocked from importing cheaper and more refined white sugar from Brazil.