The price of the product was set at Q4 ($ 0.51) per 500 grams, the first increase since May 2010, when the stock went from Q3.75 to Q3.5 per half kilo.
In the industrial sector increases have not been announced, said Luis Mejia, manager of Meresa, which distributes sugar to large industrialists.
According to Pedro Cofino, manager of a popular consumer goods distributor, the adjustment is an attempt to prevent the product being exported to Mexico, where they pay up to 60% more than in Guatemala.
"Currently, in Mexico a half kilo packet of sugar is priced at 19.95 pesos (Q13.68 ($ 1.70)), in Guatemala the same amount of product costs Q8 ($ 1.03), which is a Q5.68 gain ($ 0.73) for the distributor.
"What we know is that in Mexico the price rose sharply from last week and, as happened last year, can cause shortages because it becomes attractive to carry sugar to the borders", " said Mejia in Elperiodico.com.gt.
Source: elperiodico.com.gt
More on this topic
March 2009
Sugar demand is expected to grow by 1.5% in 2009, half the 3% that it grew by in 2008.
The main reason for the decrease in demand, according to a report by F.O. Litch, is the slowdown in the global economy and declining production in India and Brazil.
It is expected that the price of raw sugar will rise and reach 16 cents per pound, marking an increase of 19% over the current price.
August 2011
The export target for the 2011-2012 crop is $60 million, 14% higher than the $52.7 million harvested in 2010-2011.
Total exports in the last harvest were 281.4 million kilos, at an average price of $0.19 per kilo.
The growing demand for the cantaloupe variety in U.S. and Canadian markets, has encouraged the industry to increase planting.
January 2012
Salvadoran Sugar farmers will plant an additional 8,000 acres of the plant between 2012 and 2013.
Between the harvest which will finish in April this year, and the next sowing in October, producers expect an increase in areas planted with sugar cane, said an industry executive.
March 2010
Sugar prices have increased 56% so far 2010, from $0.30 per pound to $0.47.
Armando Boesche, head of the Sugar Growers Association of Guatemala (Asazgua), explained the increase as a way to prevent the product from being transferred to Mexico.
Despite the fact that prices have increased and that exporters have repurchased contracts, the Economy Ministry does not rule out additional measures to address the shortage of sugar in the country.
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