News
Sugar prices stir bitter issues ahead of Christmas
Sugar stocks that were previously hoarded are now being made available
In the retail markets, sugar prices have increased amid shortages in some areas as the government struggles to maintain stocks in the markets ahead of the Christmas season.
By yesterday, some shops claimed they had run out of stocks while some raised their prices ranging from Rs 300 to Rs 350 a kilo, after the maximum retail price for sugar was removed this week.
Currently, the wholesale price of sugar stands at around Rs. 310 to Rs 315 a kilo. This could be expected to increase by 3% to 5% at retailers due taxes said, Sugar Importers Association Vice President and Importers Association Spokesperson Nihal Seneviratne said.
The issue over sugar prices has come up after the government revised taxes from 25cts a kilo to Rs 50.
However, the Trade Ministry said after its decision to remove the maximum retail price it would acquire and redistribute sugar stocks that were imported at a levy of 25 cents to selected supermarkets and sell them at the previously imposed control price of Rs. 275 a kilo.
However the new imports that fall under the special commodity levy of Rs. 50/- will not have the maximum retail price.
The Ministry estimated that some 16,000 metric tonnes of sugar imported under the previous levy of 25 cts was to be collected.
However, currently, 2000Mt of sugar out of 16,000 Mt imported at a levy of 25 cents a kilo have been redistributed, a Consumer Affairs Authority (CAA) Official said.
A total of 30,000 Mt of sugar–old and new stocks–was available in the country. There was enough sugar to carry on for the next year, the CAA Official said.
However, despite the availability of sugar and measures currently being taken by the CAA to redistribute the old stocks at supermarkets, and new stocks making their way into the markets, consumers were struggling with their sugar purchases.
“The available sugar is expensive. It is difficult for us to carry out business at the bakeries, but we do not have a choice,” Bakery Owners Association President N. K. Jayawardena said.
The maximum retail price was enforced only until the previously imported stocks were over, he said.
However, new stocks would be Rs. 310 a kilo and this would hurt the pockets of the Bakery Owners Association members deeply, as they would be paying Rs. 2500 additionally for a sack of sugar, Mr. Jayawardena said.
Stocks that were previously hoarded were now being made available without a price margin, he added.
The CAA Officials were working towards ensuring the redistribution of the remaining stocks took place accordingly.
Furthermore, the CAA had intensified raids and investigations to cover all districts for the safety of goods and food purchased by consumers during the festive season.
In case of consumer complaints, the CAA encouraged the people to give information to the authority’s hotline: 1977.
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