Sep 22, 2018

'Smart ants' on sugar!

The sugar importers have alleged that the Consumer Affairs Authority had given information to three chosen sugar importers prior to changing the taxation on sugar.

This suspicion was further aggravated when one of the sugar importers had given an assurance at a meeting held recently between the importers and the Chairman of the CAA Anura Maddegoda that he would supply the sugar requirement for a month at the previous rate.

However, our attempts to contact the CAA Chairman Maddegoda for a comment in this regard, our efforts were proved futile.

The importer who gave an assurance that he would supply the country’s sugar requirement for a month at the same rate was the owner of the Wilma Pyramid Company owner Thanveer Siddique.

The monthly sugar requirement in the country is 45,000 metric tons and Thanveer had stated that he could supply 40,000 metric tons of sugar at the previous rate.

There are 11 sugar importers in the country and three of them are in the possession of 40,000 metric tons of sugar.

 The other two importers who are in the possession of these stocks of sugar are Palliyagoda trading and Wilson Trading. Their profit is Rs. 400 million.

There are allegations that these three sugar importers had stocked the sugar prior to the tax revision having purchased it at Rs. 88 per kilo. Hence, they would rake in a profit of Rs. 10 per kilo of sugar.

Accordingly, they would earn a profit of 400 million based on their stocks.

Govt.'s intentions good!

The government had initiated the tax revision this month with the hope of giving the consumer the benefit of the price reduction, as the world sugar prices are lowest during this month.

This was best explained during the ITN news bulleting in the following manner.

via ytCropper