Promote public-private partnerships:

Govt to increase sugar production

The Government is in the process of reviewing four sugar manufacturing plants at Pelawatta, Hingurana, Kantale and Sevanagala in order to produce at least a 30 to 40 percent of the country’s sugar requirement in the near future.

Tea and Sugar Research Institute, Chairman Dr. Jery Jayawardena told Daily News Business, that India which produced and exported sugar earlier is now importing sugar from other countries due to crop failures.

Because of that Sri Lanka has to import sugar from EU countries who produce sugar out of beetroot and they have increased prices of sugar by three times per metric ton due to the removal of subsidies. Therefore, Sri Lanka needs to increase local production, he said.

Sri Lanka needs 550,000 MT of sugar per year and only 35000 MT are locally produced. If the country could produce at least 30-40 percent of the balance requirement it will ease the problem. The Government will promote public-private partnerships to increase sugar production locally while enhancing the livelihood of sugar small holders like it did to enhance tea smallholders.

Jaggery production out of sugar cane will be increased to reduce consumption of sugar, he said.

The per capita consumption of sugar in Sri Lanka is around 30 kg which is high when compared to average sugar consumption in the world.

There were 3,800 ha in Kantale, 5,600 ha in Hingurana, 4,500 ha in Pelawatta, 4,600 ha in Sevanagala and 5,700 ha in Moneragala. At present only Pelawatta and Sevanagala sugar factories function.

During the last few months sugar prices in the world market have increased substantially from around 300 US$ to 900 US$.

The foreign exchange involved in importing our sugar needs is more than Rs 12 billion.

Hence, developing the local sugar sector, will save foreign exchange. It will also increase employment opportunities in the country leading to socio-economic development.

RK