The festive season is here, but the increase in the prices of essential consumer goods and services and little relief from the budget have left the public little to celebrate about. Colombo University’s Economics Professor Dr. Sirimal Abeyratne said the rising government expenditure – mostly unproductive and wasteful, and the consequent budget deficits will have [...]

Feeds Editorials Times Online

News

Their only wish for Christmas is that prices will come down

By Nadia Fazlulhaq
View(s):

The festive season is here, but the increase in the prices of essential consumer goods and services and little relief from the budget have left the public little to celebrate about.

Colombo University’s Economics Professor Dr. Sirimal Abeyratne said the rising government expenditure – mostly unproductive and wasteful, and the consequent budget deficits will have a great impact on prices for a long period.

He said the most affected group would be the middle class or the working class who have got used to urban life styles and depend on salaries, wages and pensions as regular income.

“They get affected by rising prices more than the rural poor, as their life styles are more integrated with the market. But the prices are in fact rising. Consumer prices – especially food prices fluctuate seasonally due to seasonal changes in demand as well as seasonal changes in supply,” Dr. Abeyratne said.

According to the open market average retail price list issued by the Census and Statistics department, the prices of a number of goods have increased compared to the last weeks of 2011.

Some of the items that have seen a marked increase in prices are wheat flour, samba rice, mysore dhal, sugar, egg, milk powder, bread, coconuts, potatoes, coconut oil, onions, garlic and mustard.
The price of an egg was Rs. 9.69 during the end of November 2011 but today an egg is sold at Rs. 14.
Similarly the price of bread that was Rs. 49 in November last year is being sold at Rs. 60. The price of a kilo of dhal was Rs. 131 during the end of 2011 and is now sold at Rs. 180 a kilo. The price of a kilogramme of sugar has been increased from Rs. 93 in 2011 to Rs. 120 this December.

The price of a 400g imported milk powder has been increased from Rs. 264 to Rs.325. Similarly, potato prices have shot up from Rs.118 in 2011 to Rs. 160 this year while the average price of a coconut that was Rs. 33 last year is Rs.45 today.

A kilo of local potatoes had increased from Rs. 118 rupees at the end of 2011 to Rs. 160 this month.
These exclude the increase in the prices of vegetables. The price of a kilo of brinjals has increased from Rs. 83 in 2011 to Rs. 160 a kilo this month. A kilo of leeks that was Rs. 68 towards the end of last year is now going at Rs. 160.

Capsicum that was Rs.169 last year is a whopping Rs. 300 by the end of this year. The other vegetables that have seen an increase in prices are beans, carrots and drumstick.

Meanwhile a spokesperson for the Housewives Association said it was the household women who feel the burden of the increase in prices. The Association’s secretary Deanne Rizvi said although people were seen shopping for the upcoming festive season they were spending from their salaries and extra payments like bonuses.

“There are women who pawn their jewellery to give their children the best festive time. At present clothes, food, school stationery and even maintenance work is costly,” she said.

She said if supermarkets decide to increase the prices of goods, especially after the new supermarket tax following the budget, it will severely affect the working class, who find it convenient shop at super markets on their way home after office hours.

Andrea Jansz, a housewife from Kelaniya said the fact that the prices of imported items too have increased in addition to the local item has put an added dampener on the season. “Christmas involves a lot of bakery products and imported goods. But along with high expenses on dry rations, vegetables, meat and ready-made clothes, this year’s celebrations are limited,” she said.

Niluka Perera from Borelesgamuwa has started her Christmas shopping early to avoid the last-minute hassle.
“Despite our country exporting garments to Western countries, the clothes sold here are expensive and even during the festive season with all the discounts, buying new clothes even for a family of three is a costly affair. The food items for Christmas will cost more,” she said.

Lanka Jathika Sevaka Sangamaya General Secretary Srinal de Mel said despite three-years having passed since the three-decade-long war ended, the public have not benefited from any economic gains.
“The Cost of Living is increasing rapidly with prices of essential goods going up in addition to the cost of clothing, transport, utility bills, education and health,” he said.

He said of the current labour force over 60 per cent earn a wage below Rs. 8000 a month and the price increase in goods and services have affected them adversely.

Meanwhile Lanka Jathika Estate Workers Union General Secretary K. Velayutham warned that the coming New Year will heap many burdens on the plantation workers, who earn a low wage although the prices keep increasing.

“In the budget, plantation workers were not even given a sympathetic word. With the increasing Cost of Living, the plantation youth are moving into cities looking for manual labour,” he said.
Mr. Velayutham said for the plantation worker who starts work early morning and returns home late in the evening, flour, dhal, bread, sugar, milk powder and kerosene are essential daily needs. “The only protein they can afford is canned fish or eggs. The increase in prices of both items will have an impact on the nourishment level of the families,” he said.

J.Rajeswari from Thirunelvely in Jaffna can buy vegetables at a relatively low cost, but says the high prices of dry rations, electricity charges and expenditure on education and health have an adverse effect on his family in the coming year

Old Moor Street Trader’s Association President P.Sundaram said the budget did not bring any relief and the prices of essential items were increased prior to the budget.

“Vegetable prices were already increased and now other dry rations have gone up. Usually during this month, we see a lot of people purchasing items in bulk at wholesale markets. But this year, people are purchasing goods from the retail market,” he said.

Meanwhile, the Consumer Affairs Authority (CAA) has deployed more teams to conduct raids islandwide to crackdown on fraudulent methods of selling goods.

CAA’s Director Chandrika Tilakaratne said they had received complaints on discrepancies with regard to sale of electronic items and textile.

“Raids are conducted both in towns as well as villages. There are many instances where customers are misled, low quality and faulty items are being sold with some even without a warranty,” she said.
She also said packeted food items were being sold in large amounts especially during this season when people gather.

“It is important to check the manufactured and expiry date and the maximum retail prices,” Ms. Tilakaratne said. She said even in supermarkets, consumers should be alert about checking the labels on imported items prior to purchasing.

According to CAA’s statistics the highest number of complaints were from Colombo district followed by Kandy, Gampaha and Kurunegala.




Share This Post

DeliciousDiggGoogleStumbleuponRedditTechnoratiYahooBloggerMyspace
comments powered by Disqus

Advertising Rates

Please contact the advertising office on 011 - 2479521 for the advertising rates.