With the aid of a powerful government minister, they are planning to create an artificial shortage of sugar in the market.

Constant changes in this levy are suspicious and are intended at giving profits to a mafia of importers and certain officials, according to the sources.

Previously, the Rs. 30 per kilo levy on imported sugar was suddenly brought down to 25 cents per kilo not with the intention of favouring local producers, but in order to give unfair profits for certain importers.

The VAT amendment to be adopted shortly has sugar listed and that will allow importers to raise the price, the sources say.

From September 15, the government increased the levy on sugar by Rs. 1.75, to Rs. 2.00 per kilo.

Also a Rs. 15.00 special levy has been imposed on raw sugar.

When contacted, a government spokesman said this levy was aimed at ensuring interests of local farmers, and also at discouraging sugar consumption.

He added there was no intention of raising the maximum retail price for sugar.