Oct 13, 2021

Sugar shortage in the offing as Control prices slip away! Featured

The control prices on sugar are likely to be lifted soon, according to internal government sources.

This is because of the increasing number of public complaints made to the Consumer Affairs Authority, citing sugar is being sold disregarding the control prices.

By yesterday (12), the wholesale and retail prices of sugar had risen to Rs. 130 and Rs. 138 respectively, according to Pettah wholesalers.

However, according to the Control Price Gazette notification issued by the Consumer Affairs Authority on Sep. 02, the MRP of should be Rs. 122.

The MRP of a kilogram of packaged white sugar is Rs. 125 rupees while the MRP of a brown sugar kilo is Rs. 125.

Importers have revealed to media that although they have been allowed to import sugar, they have not been able to do so due to the shortage of dollars and the inability to issue Letters of Credit.

As a result, importers are warning of a possible sugar shortage in the future.

The global price of a MT of sugar has also increased to US $ 550.

Therefore, when a kilogram of sugar is released from the port it costs Rs. 116, the importers point out.

According to the CAA gazette notification, the maximum wholesale price importers must sell their sugar imports is Rs. 116.

However, stocks of sugar produced by the Pelwatta, Sevanagala, Athimale and Hingurana sugar factories are provided to the CWE and Co-operative Societies. According to the Lanka Sugar Company (Pvt) Ltd (LSCPL), ten local buyers have been registered with these factories and they are being supplied with limited stocks of sugar.

For private buyers, 2,000 MT of sugar were released in October and 10,000 MT were released in August.

Speaking to 'Aruna' newspaper, Chairman of the LSCPL - Janaka Wimalachandra has told 'Aruna' newspaper that issuing sugar to buyers was restricted after the price controls were  imposed.

He also said that he was watching to see if the control price imposed on sugar would be removed.

However, the 25 cent tax imposed on sugar imports will be abolished from today (13).

Meanwhile, the Major General Shantha Dissanayake, the Chairman of the CAA has stated that their officers have commenced investigations from yesterday (12) to find outlets that are flouting price controls.

However, it is said that only 10 such raids have been carried out in the entire Colombo district yesterday.