In response to the ongoing scarcity of sugar in the local market, the Consumer Affairs Authority (CAA) has made a significant decision. CAA Chairman Shantha Niriella announced the removal of the maximum retail price (MRP) on sugar in a Gazette Extraordinary released on November 21.
This move comes as a reversal of the previous November 3, 2023 gazette notification that enforced price controls on sugar. The rescinding of this notification is effective immediately.
Under the previous communication, packed and unpackaged white sugar were capped at Rs. 295 and Rs. 275 per kilogram respectively. Additionally, packed and unpackaged brown sugar were mandated to be sold at Rs. 350 and Rs. 330 per kilogram respectively.
Before the imposition of price controls, the Finance Ministry had escalated the Special Commodity Levy on imported sugar from 25 cents to Rs. 50. Consequently, these actions led to a shortage of sugar in the market.
To address the scarcity, the government decided on November 20 to acquire sugar stocks imported under the previous levy of 25 cents per kilogram. These stocks will be made available to consumers through Lanka Sathosa, supermarkets, and cooperative outlets at a set price of Rs. 275 per kilogram within a month.
Trade Minister Nalin Fernando had previously indicated that once the government assumes control of the imported sugar stocks, the necessity for an MRP on sugar would diminish. This decision aligns with the government’s plan to subject future sugar imports to the special commodity levy of Rs. 50.
