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Lanka Confectionery Manufacturers Association yesterday justified the recent price hikes of their products, citing the cost of raw materials have soared in multiples comparatively.
“The price of the raw materials used in the production of confectionery has increased by almost 200%,” LCMA President S.D. Suriyakumar said during a media briefing yesterday, adding that the industry comprises entirely by local entrepreneurs.
The price of a kilo of wheat flour, which is the main ingredient used in the production of sweets, has increased by 277 from Rs. 77 to Rs. 290, while the price of a kilo of sugar increased by 180% from Rs. 114 to Rs. 320, and the price of vegetable oil has increased by 195% from Rs. 475 to Rs. 1400. However, compared to the raw material price hikes, the price of biscuits has been increased by only by 171% from Rs. 100 to Rs. 271, LCMA explained.
It was pointed out that despite the foreign exchange crisis, the industry worked towards exports as well as the local market. At present, the products of the member companies of LCMA are exported to over 50 countries, thereby providing an annual income of over $ 150 million to the economy.
In this backdrop, the LCMA pointed out that it was unfair by those groups campaigning not to buy confectionery products out of context.
The union claim that if the factories are closed, 50,000 direct jobs and 500,000 indirect jobs may be lost, not only the workers, but also their dependents will be in a desperate situation.
“Some people are spreading false propaganda with the aim of destroying this industry. Therefore, we request the President, the Prime Minister and all related ministers to provide the necessary support to maintain these industries without allowing them to collapse, they noted.
“Around 25% to 30% of the income of the 150,000 retail stores in Sri Lanka is the production of confectioneries. At the same time, confectionery manufacturing companies pay a huge amount of taxes to the Government annually. At present, more than 20,000 farmers are in direct contact with the confectionary manufacturers and supply their products and if there is any impact on this industry, they too will not be able to sell their products,” LCMA added.
The pressure caused by multiple challenges from COVID pandemic to the ongoing economic crisis, has affected other industries as well as the confectionery industry and as a result the price of raw materials has increased rapidly and despite this, industrialists have to keep the price of biscuits as low as possible compared to other food items.
“There are about 30 local producers with our association. The owners who are engaged in the industries here are 100% local owners. Therefore, not a single penny is sent abroad. We have never acted unfairly to our customers. During the COVID pandemic, we took the pressure and worked to provide our products to the customers without increasing any amount.
“But with this economic crisis, we felt its pressure and impact. Therefore, we wanted to somehow maintain these industries without closing them down. That is why some amount was increased. All the other products are now being increased massively. However, we have never made unreasonable increases.”
