‘Parippu’ or red lentils know to most as Dhal is known to be a favourite among Sri Lankans. However, for this New Year parippu may lose some of its taste. This is since there is a crisis ‘boiling’ within Sri Lanka’s dhal market.

The import tax on finished dhal is lesser that that on whole dhal. Through this move the government attempts to encourage the import of finished dhal.

Hence, since the tax on finished dhal is lower Sri Lankan importers have placed more orders for finished dhal with an eye on the festive season as well.

However, after these orders had been placed the prices of finished dhal had greatly increased in the world market. AdaderanaBiz learns that due to the price increase the orders already placed by Sri Lankan importers are being cancelled by the overseas suppliers.

This is due to the reluctance of suppliers from India, Turkey, Dudai etc to export dhal at earlier lower prices according to the orders. Hence, there is a risk of dhal prices increasing in the local market. The demand may cause the existing price range of between Rs. 118 to Rs. 125 per kilogram to go up to even Rs. 150 per kilogram.

This may make parippu lose much of its flavor this New Year.