Following an increase in the prices of Margarine by local producers, there would be a price increase on bakery products in the future, All Ceylon Bakery Owners' Association (ACBOA) President N.K. Jayawardene said.
He told the Daily Mirror that the Government had increased import taxes on palm oil and imposed a special commodity levy on block fat and margarine last year, causing concerns to the confectionery manufacturing industry.
"Subsequent to that, the import of palm oil, fat and margarine had been reduced," he said.
Hence, the local margarine producing companies have decided to increase the prices of their products due to the escalation of import tax on palm oil and fats.
Accordingly, the import tax of per 1 kg of Margarine and Fat has been increased to Rs.650 and Rs.615 respectively, however, after considering the numerous requests made by several parties, the import levy on Fat had been reduced to Rs.215 per kg, he said.
This concession only lasted for six months (Until December 26), Mr. Jayawardene said.
He said Palm oil and margarine are key essentials when making bread.
"Even the matter was brought to the attention of the President, no action has been taken so far. It has been reported that the price of locally produced margarine is to be increased yet again this year," he said.
If the current scenario continues, price hike of bakery products would become inevitable in the future in view to safeguard the industry, Mr. Jayawardene further added. (Chaturanga Samarawickrama)