The Ministry of Trade, Commerce and Food Security is to take a decision on the existing sugar shortage in the retail market and regarding action that can be taken against those hiding stocks, following a meeting with sugar importers which is scheduled to take place today (16).
Speaking to The Daily Morning yesterday (15), the Secretary to the Ministry A.M.P.M.B. Attapattu said that the Ministry and the Consumer Affairs Authority (CAA) are closely monitoring the situation and that the CAA has already conducted several raids to find sugar stocks which have been illegally stored. However, he said that no decision has been taken thus far by the Ministry in this regard and that it is planning to reach a decision after having a meeting with the sugar importers, which is to take place today.
Following the Government’s move to impose price controls on retail sugar prices after the recent tax increment, the domestic market is experiencing a shortage of sugar as a result of retail sellers being reluctant to sell sugar, claiming that they have no profit with the new levy and the maximum retail prices (MRPs).
In the wake of this sugar shortage, it was reported on Tuesday (14) that the CAA took a stock of 270 metric tonnes of sugar which was secretly stored in Peliyagoda into its custody and sealed the store.
Further, the CAA has informed the public to make complaints if any party sells sugar violating the MRPs imposed by the recently issued gazette, adding that actions will be taken against such people who breach the consumers’ rights by violating the said gazette notification.
Earlier this month (November), the Government decided to increase import taxes on sugar up to Rs. 50 per kg from Cents 25 and that decision was criticised by many parties including the opposition and civil society organisations working on consumer rights. Following this move, the CAA issued a gazette notice setting a MRP for sugar with immediate effect.
As per the particular gazette notice, the MRP for unpackaged white and brown sugar will be Rs. 275 and Rs. 300 per kg, respectively, while the MRP for packaged white and brown sugar will be Rs. 295 and Rs. 350, a kg, respectively. Issuing the gazette, the CAA announced that no importer, manufacturer, distributor, supplier or trader is permitted to sell sugar, supply, expose, offer for sale, display for sale, or supply for sale above the MRP.