Govt. to sell subsidised brown sugar via Sathosa, Co-Operatives

Monday, 30 August 2021 03:28 - - {{hitsCtrl.values.hits}}

From 1 Sept., a kilo of brown sugar to be sold at Rs. 130, cheaper by Rs. 50
White or refined sugar shortage persists pushing price of kilo above Rs. 220
Ports and Shipping Minister to waive-off demurrages of sugar importers, but only State can sell them via Sathosa and Co-operatives
CAA raids 5,400 tons of sugar from stashed warehouses in Wattala and Seeduwa
Alagiyawanna hopes to submit Cabinet-approved amendments to Consumer Affairs Authority Act No. 09 of 2003 to P’ment soon and start implementation before end-October

By Charumini de Silva

State Minister of Consumer Protection Lasantha Alagiyawanna

In a bid to resolve the crisis, the Government yesterday decided to sell locally sourced brown sugar at Rs. 130 per kilo or Rs. 50 cheaper than the market via State-owned Sathosa and Co-Operative Societies.

The move, effective from 1 September, was announced yesterday by State Minister of Consumer Protection Lasantha Alagiyawanna. In the retail market, brown sugar sells at around Rs. 180-190 per kilo. White or refined sugar sells at Rs. 210-220 per kilo.

The spike in prices led by shortage is due to the Government suspending sugar imports since mid-May due to the foreign exchange crisis, industry sources said.

Separately, Ports and Shipping Minister Rohitha Abeygunawardena also said that the Government was considering relief to refined sugar importers by waiving demurrages on stocks lying uncleared at Colombo Port due to delays in banks clearing foreign exchange.

“We have decided to waive off the port demurrage fee, but the sugar importers will not be allowed to sell. The entire stock of sugar must be given to Sathosa. Ports and Shipping and the Trade Ministries along with Sathosa will have access to the storage,” Abeygunawardena said.

Sri Lanka requires about 50,000 tons of sugar per month and currently, it only has about 25,000 tons – which are stuck in the Colombo port at present.

Although the port will incur a loss with this decision, the Ports and Shipping Minister said he will make the decision to ensure uninterrupted supply and to stabilise the sugar prices in the market.

As per the State Minister, of the monthly requirement of sugar, 23,000 tons for consumer use and the balance by the confectionery industry and other sectors.

He also said that the Consumer Affairs Authority (CAA) has raided a total of 5,400 tons of sugar stashed in warehouses located in Wattala and Seeduwa areas over the weekend.

These raids were conducted by the CAA, amidst fraudulent traders selling sugar at Rs. 220 to Rs. 250 per kilo.

Alagiyawanna also said they hope to submit the Cabinet approved amendments of the Consumer Affairs Authority Act No. 09 of 2003 to the Parliament soon and start implementation before the end of October.

Confectionery industry to be allowed direct sugar imports