The government has decided to remove the price control imposed on sugar.
State Minister of Consumer Protection Lasantha Alagiyawanna said the decision was taken during a meeting held between Minister of Finance Basil Rajapaksa and a group of sugar importers.
Accordingly, importers have agreed to sell a kilogram of sugar for a maximum retail price of Rs. 150.
State Minister Lasantha Alagiyawanna said the importers had agreed to reduce the prices, if the prices in the international market come down.
The State Minister said the importers had requested a price revision due to the increase in shipping charges and also owing to the depreciation of the Rupee against US dollar.
He said there is a shortage of sugar and cement in the market at present and some vendors have been selling stocks above the control price.
State Minister Lasantha Alagiyawanna said accordingly a discussion was held with importers to address the crisis.
The government imposed control prices on sugar on the 2nd of September after the prices in the local market increased steeply.
Accordingly, the wholesale price of a kilogram of white sugar was set at Rs.116, retail price at Rs.122, the retail price of a kilogram of raw sugar at Rs.125 and a kilogram of packeted raw sugar at Rs.128.