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World prices plunge, but Lankans pay more for sugar
View(s):Sugar prices rose by five to six rupees a kilo at retail outlets yesterday. In addition, there were increases in prices of sugar-based products.
The price of a cup of milk tea rose from Rs 35 to Rs 40 while plain tea increased from Rs 15 to Rs 20. Â This was the result of the increase of the Special Commodity Levy on sugar imports from Rs 13 to Rs. 23.
The Government claimed that the tax increase would positively help the local farmers engaged in sugarcane cultivation as their produce was now coming to the market. The prices of sugar and sugar-based items rose, though world sugar prices have dropped drastically in recent months. During the past two months the international sugar prices have dropped by about US$ 100 a metric tonne to US$ 450-460 range.
Last year, sugar import taxes were revised several times. On July 18 last year, the Special Commodity Levy (SCL) on sugar was reduced from Rs 30 to 25 cents. This was later increased to Rs 2 on September 15, 2016. It was again increased to Rs 7 and later, on December 21, it was increased to Rs 13.