Ethiopia Caps Sugar Margins to Control Prices, Capital Reports

September 14th, 2009 | by addis portal |

By Jason McLure

Sept. 14 (Bloomberg) — Ethiopia’s Sugar Development Agency capped profit margins for wholesalers who buy sugar from the state-run producer and importer in an attempt to control prices, Capital reported.

In a meeting held on Sept. 7, 61 wholesalers were told that their profit margin will be limited to 25 birr ($1.99) per 100 kilograms (220 pounds), the Addis Ababa-based newspaper said, citing an unidentified person at the government sugar agency.

Ethiopia’s three state-owned sugar plantations produce about 280,000 metric tons a year, while nationwide demand is about 460,000 tons, according to Capital. Ethiopia imported 165,000 tons of sugar last year, it said.

To contact the reporter on this story: Jason McLure in Addis Ababa via Johannesburg on pmrichardson@bloomberg.net

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