Analysis of the Effect of the Rising Sugar Prices on the Welfare of Households: A Case Study of Kawempe Division
Abstract
This study was carried out to investigate the effect of rising sugar prices on the welfare of
households with main emphasis put in Kawempe Division. In order to meet the main
objective of the study, the research intended to assess the effect of rising sugar prices on the
level of sugar consumption, to find out the relationship between sugar consumption and
household size and to assess the effect of sugar prices on income of households.
Secondary data and primary data obtained using structured questionnaires were used and 72
respondents were interviewed.
Analysis was done under two stages that is univariate and bivariate. With univariate analysis,
it showed that majority of household heads were males, aged between 31-40, were
inform/non-permanent employed, had been to secondary, with their household size ranging
between 1-3, had their earning ranging between 200001-400000 Ugandan shillings, with
sugar consumption ranging between 2-3kgs and were affected by the rising sugar prices with
the average price of sugar as 2210.319 Ugandan shillings.
Based on detailed results of the study using bivariate analysis, it showed that the rising sugar
prices have no effect on the amount of sugar consumed implying that an individual will not
increase the amount of sugar consumed because of a decrease in the sugar prices neither will
the individual decrease the amount of sugar consumed due to an increase in sugar prices,
there is a relationship between sugar consumption and household size implying that the larger
the household size the more amounts of sugar consumed and rising sugar prices had no effect
on the income levels of the households thereby implying that there are no changes in the
households’ income due to rising sugar prices.
In conclusion, welfare is mostly obtained from consumption of goods and services, if at all
households increase on their consumption levels of sugar, they will be influencing their
welfare positively leading to better and improved wellbeing Ceteris Paribus and the
government should also come in to setup policies which can help stabilize the rising sugar
prices to benefit both producers of sugar through reduced costs of production and later
households who are to enjoy stable prices. This study was only limited to effects of rising
sugar prices on welfare of households however researchers can extend the study to assessing
the effect of rising sugar prices on the standards of living of households and assessing the
impact of price increase on welfare of poor households.