Jul 08, 2021

Wholesale sugar prices rises to unprecedented level Featured

The wholesale price of sugar has seen an unprecedented hike with the wholesale traders increasing the price of a kilo by Rs 25 in just 10 days.

Since the tax on sugar is just 25 cents, sugar importers are said to have imported 600,000 metric tons of sugar. Analysts say this amount is sufficient to cater to the country's sugar requirement until next year's May.

According to the statistics, the annual sugar consumption is about 500,000 metric tons.

On the other hand, Sri Lanka too produces 100,000 brown sugar.

The Sri Lankan government lowered the tax on sugar from Rs 50 to 25 cents in October last year, despite a stock of 90,000 metric tons of sugar being imported to the country.

This shows that sugar has been imported to the country under the reduced taxes for a period of eight months.

Along with the reducing of tax on sugar, the Thereafter, the government also declared sugar as an essential commodity and imposed a maximum retail price for sugar _ a Rs 85 per one kilo.

Later, the government stopped issuing licences for importing sugar, with effect from May 22.