Shortfall in supply,high exchange cost lead to sugar price hike

30 August 2021 08:47 am Views - 114

• The government had imposed a import ban on sugar in May since the country had sufficient stocks

By Kelum Bandara

The lack of supply and high exchange cost are the reasons for the current spike of sugar prices in the market , a spokesman said.

A spokesman for the Essential Food Commodities Importers and Traders Association said the government imposed an import ban on sugar in May since the country had sufficient stocks.

He said these stocks were being exhausted at the moment leading to a shortfall in supply. He said the importers had procured stocks under forward exchange agreements. And the payments were supposed to be made now.
The depreciation of the rupee and the shortfall in supply are the reasons for the price hike. We have fixed the wholesale price at Rs.200 a kilo.