Confectioners and bakers get government nod to import white sugar under licence

• Sugar requirement of confectioners and bakers estimated at 6, 000 MT per month

By Shabiya Ali Ahlam
Local confectioners and bakers received the Finance Ministry nod on Friday to import the required quantities of white sugar for the continuation of their industries, amid a massive spike in sugar prices in the local market due to the short supply of the commodity. 

After a series of discussions held in the recent weeks that highlighted the plight of manufacturers of confectionery and bakery items, the government had agreed to provide import licences so that they can import white sugar directly without having to procure through wholesalers.

Speaking to Mirror Business, Lanka Confectionery Manufacturers Association (LCMA) Chairman S.M.D. Suriyakumara said the joint proposal with All Island Bakery Owners’ Association (AIROA) that was put forward to the government was finally accepted after a series of negotiations.

“Our proposal was approved after we shared with the Finance Ministry and Trade Ministry that some of our members are on the brink of collapsing due to a shortage of white sugar. They understood that prices quoted by importers are unreasonable and also the sugar they are supplying to us are of very poor quality,” said Suriyakumara.

The requirement of white sugar by the LCMA and the AIROA together is about 6,000 MT per month. 

“The approval was verbal, but we have been assured that the necessary paperwork will be carried out in the coming days allowing us to import,” he added. As the country is currently facing a shortage of US dollars, Suriyakumara shared that the Finance Ministry said it would allow businesses that have dollars to import sugar.
According to LCMA Chief, companies that are able to import white sugar as a raw material for value addition will explore the possibility of catering to SME businesses in the industry by meeting part of their requirement so that they can remain afloat.

Suriyakumara shared that the plan is to procure white sugar at Rs.125 a kilo while the current price of white sugar in the local market is about Rs.220 a kilo.

Furthermore, the LCMA representative assured that there will be no more upward revision of confectionary products despite a shortage of raw material as consumers are evidently struggling with their purchasing power and capacity. 

“It is very difficult for us manufacturers to operate with these high costs of raw materials, but we also understand that we cannot continue to pass on the high costs to the consumer. We understand that they do not have the purchasing capacity they used to have,” said Suriyakumara.