Maximum retail price imposed on sugar lifted
November 21, 2023 10:12 pm
As the shortage of sugar in the local market continues to prevail, the Consumer Affairs Authority (CAA) has removed the maximum retail price (MRP) imposed on the product.
This was communicated in a Gazette Extraordinary published by the CAA chairman Shantha Niriella today (Nov.21).
As such, the previous gazette notification dated 03 November 2023, through which the price controls on sugar was put in place, has been rescinded with immediate effect.
The previous communique had stipulated an MRP of Rs. 295 and Rs. 275 on 1kg of packed and unpackaged white sugar, respectively. It also mentioned that packed and unpackaged brown sugar must be sold at Rs. 350 and Rs. 330 per kilogram, respectively.
A day before the price controls were introduced, the Finance Ministry had issued a government notification increasing the Special Commodity Levy on imported sugar from 25 cents to Rs. 50.
As these two moves prompted a shortage of sugar in the market, the government, on Monday (Nov.20), decided to acquire the sugar stocks imported under the previous levy of 25 cents per kilogram and sell them to the consumers through Lanka Sathosa, supermarkets and cooperative outlets at a price of Rs. 275 per kilogram, within one month.
Trade Minister Nalin Fernando had earlier said that the MRP on sugar would no longer be necessary once the government takes over the imported sugar stocks, as the consignments imported after that would be subjected to the special commodity levy of Rs. 50.
