Tuesday, October 16, 2018

This is a typical example of the Sugar Mafia at work, and the incompetence of the Media to report the true facts so that the reader can decide who is correct!

The link below to today’s Daily Mirror shows that the Sugar Mafia has got together to threaten the Government and say they have temporarily stopped sugar imports, so that they can get the Government to reduce the Sugar Tax currently being imposed, as a result of the drop in World Market Prices.

Please understand that the duty was raised 3 months after it should have as that is the time it takes the Government to act, on behalf of the Consumer. In the meantime the Sugar Mafia made HAY as they were making super profits and not reducing the price of Sugar to Rs70/kg. You can just imagine the sickening profits made by them in that period!

Now the price of world market Sugar has gone up 10% and in India sugar is still available, the last time I checked at US$330, and if you play your cards right, you can even get it for US$300 as the Indian Government somehow wants to reduce its surplus of sugar this year from the huge stocks and may even pay a subsidy if the deal is done Govt. to Govt. by an organization such as Sathosa!

So it simply unacceptable that the Sugar mafia is making these threats to the Government, and it is time they call their bluff. Being held hostage by importers has been a tried and tested game for as long as I have lived, so it is never going to change, and it is only a strong government which can come to an arrangement where the consumer is NOT diddled by a Mafia, whose interest is purely extortionate profit and not a reasonable profit.

The figures they are showing about the losses incurred are absurd to say the least and sour grapes on their part. It is the Government’s fault too not being on the ball on prices movements in the world market as well as stock in local warehouses. There is enough sugar in the warehouses for the X mas Season in SL already and the demand is NOT going to double as the article says, adding to the grave mis conceptions it creates.

Sadly Sri Lanka does not have a competent Media who can simply explain this issue so the average man understands and puts them in their place further exacerbated because the Sugar Mafia SWEETENS them in any way they want! No words can express that disgrace of dastardly act of treason carried out by these jokers acting in the guise of Sugar Importers Association. SHAME


Anonymous said...

US$300 is Rs 51,600 at today's exchange rate, or Rs51.60/kg

Taxes are now Rs40/kg so wholesale is Rs91.60/kg so selling at Rs106 means Rs 15 for transport and retail margins which is fair.

In any case if Food City can sell it today at Rs98 this is because the sugar was bought at both lower dollar rates and lower dollar exchange rates.

Today's prices on the world market are reflected in the MSRP in 3 months time, so while I agree price controls are wrong, so is oligopolistic extortionate pricing.

Anonymous said...

International Sugar Price Chart


Anonymous said...

The Government should get a life. Every day the price of Sugar, Cocoa, Oil, B Onions, Dhal, Green Gram, Coconut Oil changes to say nothing of the vegetables in the shops.

So consumers must get used to constant changing prices and go to shops that offer discounts that are clearly advertised outside their doors to buy what they want.

If there is competition then the consumer can be served at the best price. The problem is that Sathosa though owned by the Govt. is NOT doing its part in ensuring that market prices prevail and so no one charges absurd prices.

They are not properly organized as it is corrupt with officials who are making money on the side for themselves, and not helping the consumer for which it was created in the first place.

Under these less than ideal conditions, our consumer is taken to the cleaners. In a country that is rotten and corrupt from the top down it is only money that talks and so there is no consumer protection from price gouging. If some people taken to jail for overcharging then they will be careful not to profit too much over a reasonable level.

Price Controls don't work as it only reduces the quality of the food, and look at the latest price controls on water, so that shitty water and good water has to be sold for the same price. That is simply crazy.

Anonymous said...

who is in the sugar mafia? name names. the public deserves to know