Mohammed Hamid Al-Klaiby, senior vice president of Savola Food-Sugar Middle East, of which USC is a subsidiary, told Arab News as sugar prices had tumbled in the international market, that was bound to have an impact on the local market.

“Within two weeks, the old stock in the market will be exhausted. After that, the consumer will be paying less as USC has already reduced its prices by 11 percent.”

Currently the company is charging SR150 for a 50-kg bag as opposed to SR166 last month, he said. “Sugar prices tumbled in February, not only because of external macroeconomic concerns and the stronger US dollar, but also due to the steep front month price that has been scaring off import demand plus the anticipation of a large Brazilian crop due in a few weeks’ time,” Al-Klaiby said.

Saleh Al-Khalil, deputy undersecretary for consumer affairs in the Ministry of Commerce and Industry, was also quoted this week as saying that sugar was going to be cheaper in Saudi Arabia since Brazil, the biggest producer of sugar cane, was expecting a big harvest. In addition, India, Egypt and Pakistan have cut down the estimates of their purchases from the international market.

Al-Khalil also referred to the international stock market where the price of a ton of sugar has decreased from $700 to $625. Sugar surged to a 29-year high in January.

Sugar prices have been fluctuating for the last few months with Klaibi warning in January of continued volatility until October. In December, the prices rose twice in the local market.