Confectionery industry cuts retail prices as consumption drops

• Prices reduced across all product ranges by 10-15% from Monday
• LCMA says move is to pass on rupee appreciation benefit to consumers
• Assures no price increases in next six months

The local confectionery industry is witnessing a consumption drop of over 25 percent, due to the escalation of the prices of all product ranges and to remedy the situation, a decision has been taken to reduce the prices.
The prices of confectioneries dropped by 10-15 percent across all product categories yesterday, after the Lanka Confectionery Manufacturers Association (LCMA) took a decision in this regard, over the weekend.
Speaking to Mirror Business, the LCMA said the move was made to help the industry recover from the drop in demand and to pass on the benefit of the rupee appreciation to the consumers.
“The prices of confectioneries have increased since the cost of production shot up, 

due to the increase of electricity charges and with it being difficult to import certain key ingredients. Now we are seeing some improvement, therefore we want to pass on the benefit to the consumer,” said LCMA President S.M.D. Suriyakumara.
He added that it is hoped that with the reduction in prices, the consumers would decide to increase their purchases.
Suriyakumara assured that for the next six months, the prices of the confectionery products would not be increased but remain fixed.
However, when queried if there is a possibility of a further drop in prices, as plans are afoot by the government to ease the import restrictions in the coming months, Suriyakumara said no decision has been made in that regard.
Consumers across the island nation opted to cut consumption of confectionery items, as the retail prices increased by about a staggering 233 percent in 2022.
According to Suriyakumara, the informal and unstructured players, such as those engaged in producing homemade biscuits and fried snacks, were at an advantage, as they were able to operate with only a marginal increase in prices.
“They (informal players) don’t pay taxes and don’t have much overhead. So, with a slight increase in prices, they saw improved sales. We pay taxes and our overheads are high, so were compelled to increase the prices at a higher percentage to stay afloat,” he added.