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Bitter battle over sugar prices: Traders resist CAA moves
Wholesale sugar importers this week resisted moves by the Government, holding back stocks and seeking permission to sell at old prices.
The move has resulted in retail traders selling the stocks at old prices and the Consumer Affairs Authority (CAA) yet to take action against them.
In a gazette notification issued on November 10, the CAA directed that white sugar should be sold at a maximum retail price of Rs 90 for a one kilogram pack and Rs 85 unpacked, while the wholesale price should be Rs 80.
However, Sugar importers have insisted that they had imported 90,000 Mt before the gazette notification was issued and were unable to sell the sugar at the new prices.
But, a CAA spokesperson said it had information that another 80,000 Mt of sugar had been imported subsequently and therefore traders should be able to sell the sugar at reduced prices.“We will be compelled to carry out raids and take action against those hoarding stocks from next week,” the CAA spokesperson warned.
This has been the second consecutive time that the Government has not able to control prices by issuing gazette notifications.
Earlier a similar gazette was issued to control the price of rice, but so far the CAA has not been able to control prices resulting in shortages in the market.
According to Agriculture Department Director General W.N.W. Weerakoon, the country is in possession of 1.8 million tons of paddy from the Yala harvest which could generate 1.1 million tons of rice.
“The shortage of rice only exists in the market. The millers and the merchants are responsible for it,” he charged.
(See related story on Page 14)