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Biscuit manufacturers concerned over losing export markets

28 Nov 2021

By Imesh Ranasinghe  Confectionery manufacturers are concerned about losing export markets for biscuits, as the prices of Sri Lankan biscuit products are 20% higher than those in the international market, The Sunday Morning Business learns. Speaking to us, Lanka Confectionery Manufacturers Association Chairman S.M.D. Suriyakumara said that confectionery manufacturers were facing a big problem with regard to the loss of export markets due to higher prices of Sri Lankan biscuit products. He said the price of Sri Lankan-manufactured biscuits had increased by 20% compared to their counterparts in other Southeast Asian countries like Thailand, Malaysia, and Indonesia. He said these countries could sell biscuit products at a lower price due to the availability of raw materials and good economic conditions as opposed to the situation in Sri Lanka. Sri Lanka’s confectionery industry products, which include biscuits, are exported to over 55 countries and earn an annual export income of $ 100 million. According to him, increases in the price of raw materials, shipping costs, and other related expenses such as demurrage payments to clear containers from the ports, had led to higher prices for local biscuit products. Suriyakumara said that the main ingredients for biscuit production, such as flour, are bought locally due to delays in direct imports. He noted that flour prices had increased by 44% in the last six months, while the manufacturers were only getting 75% of what they ordered. “We are currently in survival mode,” he said. Ceylon Biscuits Ltd. and Maliban Biscuits are the largest biscuit manufacturers in the country that export a variety of crackers and biscuits (sweet, cream, and savoury) with their products seen across the US, Europe, Australia, Africa, and the Middle East. Annual production of biscuits in Sri Lanka was an average of about 81,000 tonnes, as the country has the highest consumption in the South Asian region, between 2-3 kg per person every year. Although the National Export Plan for 2018-2022 expects Sri Lankan biscuit products to dominate the African market, only five countries in the African continent sell the products so far. The global market for biscuits was valued at $ 106,232.78 million in 2020, with a compound annual growth rate of 5% in the period between 2021-2026.


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