Govt deploys team to find sugar mafia

Colombo, August 7 (Daily Mirror) - The government ,which is in a quandary over the inability to sell off brown sugar manufactured at four local factories, has deployed a team to investigate whether a mafia is involved in releasing hoarded stocks to the market in a discreet manner , a Minister said .

Only 11 percent of the total sugar requirement is manufactured locally in the factories at Pelwatte, Sewanagala, Ethimale and Galoya.
Deputy Minister of Trade R.M.Jayawardhana told Daily Mirror in an interview that only 20 percent of consumers use brown sugar totally manufactured in the country.
"We are in the process of studying as to why we are unable to sell off the remaining stocks. We have stopped sugar imports. Brown sugar is not imported through licensed importers now. Still, we suspect there are some stocks hoarded elsewhere. These stocks are being released to the market in quantities by errant traders. We believe whether there was a stock of brown sugar imported along with white sugar and hoarded elsewhere, or white sugar is being made brown through a chemical process to be sold at higher rates . It is challenging for us to find those responsible. Yet, we have already deployed a team to find it out. We have informed the Sugar Research Institute, Customs and the Consumer Affairs Authority (CAA) in this regard," he said.
The local sugar industry is currently in a crisis with farmers agitating over the failure of the two state owned companies to purchase their sugarcane harvests.
Farmers have continuously demonstrated in their areas.
Asked whether there is a plan to privatise the companies, he said no such thing is contemplated.
"We will run them as government entities,"he said.