Colombo: The government has launched an investigation into whether a sugar mafia is behind the discreet release of hoarded brown sugar stocks into the market, after four local factories failed to sell their production, a minister has said, reported Daily Mirror.
Only 11 percent of the country’s total sugar demand is met by local production from the factories at Pelwatte, Sewanagala, Ethimale, and Galoya.
Deputy Minister of Trade R.M. Jayawardhana told Daily Mirror that just 20 percent of consumers use brown sugar made entirely in Sri Lanka.
“We are trying to find out why the remaining stocks are not selling. Imports of brown sugar through licensed importers have been stopped, yet we suspect some traders have hidden stocks and are releasing them in small amounts. It’s possible that some brown sugar was imported with white sugar and stored away, or that white sugar is being chemically turned brown and sold at higher prices. Finding those responsible is difficult, but we have deployed a team to investigate. The Sugar Research Institute, Customs, and the Consumer Affairs Authority have all been informed,” Jayawardhana said.
The country’s sugar industry is in crisis, with farmers staging protests over the inability of two state-owned companies to purchase their sugarcane harvests. Demonstrations have been ongoing in farming areas.
When asked if the government planned to privatise the companies, Jayawardhana said there was no such proposal. “We will continue to run them as government entities,” he said.
