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A Rise in Sugar Prices may Increase Cost of Confectionery Products

A Rise in Sugar Prices may Increase Cost of Confectionery Products

Due sugar price hike, the pastry shops may increase the price of their products. As reported, the price of sugar increased from GEL 1.90 to GEL 2.55 in some supermarkets in Tbilisi. Weighting sugar price grew by 30 tetri and costs GEL 2 instead of GEL 2.30 per 1 kg.

Sugar price increases in the world market as well. In early October, sugar price increased by almost 7 percent in the world market. Product price increase was caused by the international factors. In foreign markets sugar price reached $ 600. Sugar price record rate was fixed in the second quarter of 2012, when the product cost exceeded $ 600. Commersant was interested in what will be the impact of a rise in price of sugar on the market and whether it will affect the companies which are major consumers of sugar?

Keti Ujmajuridze, production manager at the pastry shop Assortie explains that the sugar price keeps growing in the last period but this price has not yet reflected in the price. In her words, the company tries to hold prices by reducing revenues, however, if such a situation continues and sugar prices don’t decline, the company will have to rise prices for confectionery products.

A cake house Azat is going to increase prices at this point. According to the company’s management, sugar prices have increased, however, are not catastrophic. Director of the French-Georgian pastry Gourmet Nino Mamulashvili notes that the sugar price increase would not affect the company and the products as Gourmet is a small company and consumes less sugar.

“Price hikes will have more impact on large companies,” says Mamulashvili.