Sri Lanka sugar crisis looms, milk powder prices may surge: Importers
Colombo, May 20 (Daily Mirror) - Sri Lanka could face a major sugar supply and price crisis, along with potential price hikes in imported milk powder and other essential food items, after India suspended sugar exports and the Sri Lankan Rupee continued to weaken sharply against the US Dollar, the Essential Food Importers Association warned yesterday.
Association spokesman said importers are now scrambling to source sugar from alternative markets including Brazil, Thailand and several European countries following India’s sudden decision to temporarily halt sugar exports from May 15 until September 30.
He said Sri Lanka, which heavily depended on Indian sugar imports, has been forced into an urgent search for new suppliers amid fears of rising prices and possible shortages in the coming months.
According to the Association, sugar orders from Brazil have already been placed, but shipments are expected to take at least two months to arrive due to long shipping routes and logistical delays.
The spokesman said India has not restricted the export of refined sugar, but warned that refined sugar is significantly more expensive than normal sugar and would place further pressure on consumers already struggling with the rising cost of living.
He also said that prices of imported milk powder, along with several other essential food items including dhal, canned fish, rice varieties and imported potatoes, are expected to increase due to the weakening Rupee and rising import costs.
The spokesman further warned that if the Rupee weakens further against the Dollar, importers could face serious difficulties in securing the foreign exchange needed to place new orders for sugar and other essential food items.
Despite growing concerns, the Association claimed that the country currently has sufficient sugar stocks to last for about two months.
The development has sparked fears of another wave of food inflation, with traders warning that sugar prices could surge while the cost of several staple imported food items may also rise sharply in the coming weeks.
