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Brown sugar imports banned claiming self-sufficiency

17 Feb 2021

  • Ban effective from June 2021

  • Plans underway to increase state and local production

The Government is gearing up to ban brown sugar imports completely with effect from this June, as the country’s brown sugar manufacturing has been more than sufficient to cater to the local demand, The Morning Business learns. Speaking to The Morning Business, Additional Secretary to the State Ministry of Development of Minor Crops including Sugarcane, Maize, Cashew, Pepper, Cinnamon, Cloves, and Betel-Related Industries and Export Promotion Thilaka Jayasundara stated that the predominant cause for the ban is the local production of brown sugar being more than sufficient to cater to the local demand. While the annual sugar requirement of the country stands at around 600,000 metric tonnes, brown sugar imports stand at 120,000 metric tonnes out of the total requirement. “The ban was a request from the President, which will take effect approximately from June. There is a prominent local production of brown sugar in the country. The Ministry wants to initiate an import substitution where the total local production of 270,000 metric tonnes would replace the import demand of 120,000 metric tonnes,” Jayasundara stated. The State Ministry brought forward the fact that local production has increased drastically within the past three years. In addition, local production has increased by 440%, bringing the local production units to 270,000 metric tonnes in the present year against the 50,000 metric tonnes produced in the past years. “Along with three manufacturers, Pelwatte, and Sevanagala owned by Lanka Sugar, the Ministry is working with private, public, and government local manufacturers to cater to the demand. Local manufacturers include the Lanka Sugar Company, Galoya Plantations, and a private firm that produces brown sugar. There are four local manufacturers that cater to this demand. We have signed Pelwatte to 50,000 metric tonnes, while Sevenagala produces 220,500 metric tonnes. The private manufacturer provides the rest,” she further added. According to Jayasundara, imported sugar products are heavily processed and contain several chemicals in its production. It was highlighted that one of the reasons for the ban is to protect the public from this and guide them to healthy and organic local products. “We want to promote local production. As local production doesn't consist of chemicals in comparison to the sugar that is imported to Sri Lanka, our goal is to protect the people of the country in terms of health. The second reason why we want to impose the ban is because Sri Lanka is self-sufficient in the local production of sugar, thus employees can improve financially. Also, thirdly, as we are self-sufficient, there is no reason for us to keep spending our foreign reserves to import these products,” Jayasundara added. On a further note, due to the aforementioned reasons, she highlighted that as this measure would reduce the annual cost for sugar importation, which stands at Rs. 40 billion, there is no reason for the country to continue to import brown sugar.’


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