Sugar Shortage Grips Sri Lanka Amidst Vendor Resistance to Controlled Prices Imposed by Govt.

November 14, 2023

Sri Lanka is grappling with a sugar shortage as vendors across the local market refuse to comply with newly imposed price controls on retail sugar, following a contentious import tax that sent prices soaring.

The controversy began when a 50 rupees per kilo import tax on sugar stirred public outcry as prices skyrocketed, prompting the Sri Lanka Consumer Affairs Authority to step in. In an effort to stabilize the market, the authority has mandated price controls, fixing white sugar at 275 rupees per kilo and brown sugar at 330 rupees per kilo.

However, in an unexpected turn of events, local vendors have taken a stand against the controlled prices, stating that they cannot sell sugar below the mandated rates without incurring losses. This resistance has led to a widespread refusal by vendors to sell sugar altogether, causing a significant shortage in the market.

The Consumer Affairs Authority's move was intended to ease the burden on consumers faced with exorbitant sugar prices but has inadvertently created a new set of challenges. The standoff between the regulatory body and vendors has left consumers struggling to find sugar at affordable prices, exacerbating concerns about the economic impact on households.