The prices of consumer items have shot up despite repeated government assurances last week that prices would not be affected by the high demand expected ahead of the Avurudhu celebrations.
Last week, Consumer Affairs Minister Bandula Gunawardena, met the media on three occasions and gave assurances that prices would remain normal. The minister also issued a gazette notification, declaring that the maximum prices for dhal should be Rs. 175 a kilogram, and Rs. 73 for a kilo of sugar.
Traders in Maradana, Pettah, Borella and Nugegoda told The Sunday Times that they had raised the prices of a range of food items, including sugar, dhal, potatoes, and Bombay onions and canned salmon, among other items.
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| A Rs. 195 tin of salmon has gone up in price to Rs. 210. |
A large salmon tin selling last week for Rs. 195 has gone up to Rs. 210, a kilo of sugar has gone up from Rs. 72 to Rs. 78, and a kilo of Mysoor dhal has gone up from Rs. 155 to Rs. 180.
Retailers said they had purchased stocks from wholesalers at higher prices after the cess was imposed, and were therefore compelled to increase prices. However, not all traders had purchased fresh stocks from wholesalers in time for the Avurudha, while some had increased prices on existing stocks.
The Sunday Times reported last week that the government would be imposing a cess on essential items, and warned that prices would go up around Avurudhu time.
A few days ago, the Minister of Consumer Affairs held a conference with importers of essential food items and requested them not to increase prices until after the Avurudha. They were also requested not to talk to the media about the cess and how it would have an impact on imported foods. Although the cess became effective on March 30, importers were asked not to increase prices but sell at previous prices.
About mid-week, wholesalers were already closing for business for the Avurudhu holidays.
Traders who asked that their names not be published told The Sunday Times that the cess had already been imposed and that they were therefore compelled to increase prices for fresh imports.
It was also learnt that some retailers, aware of the cess, were selling old stocks at the new prices.
Meanwhile, traders operating at the Narahenpita Economic Centre, set up by the Ministry of Consumer Affairs, said they were under instructions to sell at fixed prices, but even there sugar was Rs. 73.50 – 50 cents more than the stipulated price.
Speaking at a press conference last Monday, Minister Gunawardena confirmed that the cess had been increased, but said it would not have an impact on the price of essential goods. He warmed that if traders increased prices, he would issue a gazette notification to control prices.
Two of the representatives of the importers associations present at the news conference said the cess would have no impact on the retail trade.
It is understood that Minister Gunawardena had spoken to the traders separately before the news conference.
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