Confectionery industry prioritises biscuit manufacturing as it’s fast becoming Sri Lanka’s staple

• Says manufacturing of other product ranges suspended to ensure biscuit ranges are available
• Despite 30% price hike, no major impact on sales as consumers have no other options
• Many smaller confectionery manufacturers have shut factories unable to cope with ongoing crisis
• Says yesterday’s hike in wheat flour price will further increase confectionery item prices 

Sri Lanka’s confectionary industry has suspended the production of several of its most popular product ranges to prioritise the manufacturing of ready-to-eat items, which is becoming a popular option as country continues to face severe shortage in gas.

As the cost of raw materials and fuel are increasing at a pace that industries cannot cope with, the Lanka Confectionery Manufacturers Association (LCMA) said stakeholders have started discontinuing production of ranges, especially easy-to-make desserts, and are instead focusing on keeping steady the production of items such as biscuits.

“We don’t know what to do anymore. We are faced with the challenge of making tougher choices. With no gas available for cooking, we are seeing an increase in demand for our ready-to-eat ranges such as biscuits. Even that we are struggling to manufacture now,” LCMA Chairman S.M.D. Suriyakumara told Mirror Business yesterday.

Due to the shortage of ingredients, such as wheat, and increase in production costs, many manufacturers have halted operations. This has led to a drop in supply of confectionery items in the market.

The industry increased the price of its products by 30 percent last month. According to Suriyakumara, the hike has had little impact on sales. 
“People don’t have a choice. There is no gas to cook food. Bakeries and eateries have closed down. Biscuits are a new staple now. 

 “We are getting letters from consumers where they share with us their situation. They ask us to reduce the price. But, we are unable to do so. We are not making profits, and we are trying our best to keep the manufacturing going,” he said.

The LCMA head shared that following the further increase in the price of flour, which went up by Rs. 40 per kilogram yesterday, the industry has no choice but to pass it on to the consumer. 

Failing to do so will impact the existence of many manufacturers, which in turn will lead to a shortage of ready-to-eat food items in the country, contributing to the food insecurity problem.  Unable to keep up with the highly volatile operative environment, many of the smaller manufacturers in the industry have closed factories.

About 50,000 direct employees and over 500,000 informal workers have been discontinued due to the inability to maintain costs.