News
Unlimited import of rice in bid to check prices
The Cabinet has decided to allow unlimited imports of rice in a fresh attempt to prevent traders from exorbitantly increasing prices following the withdrawal of the gazette notification on maximum retail prices.
The imports will be currently confined to the state sector and supplies will be made available through Lanka Sathosa, Co-operative outlets and suppermarkets.
Trade Minister Bandula Gunawardena told the Sunday Times the objective was to provide certain varieties of rice at prices below Rs 100 a kilogram and prevent traders from continuing to increase prices in the open market.
The Government is to go for the next round of imports from Myanmar where 50,000 Mt of rice will be imported in addition to the 100,000 Mt from India.
The Government earlier failed to control rice prices although it carried out raids on paddy stores of large scale rice millers and issued a gazette notification on maximum retail prices for rice.
Meanwhile, in a similar move, the Government on Friday withdrew a gazette notifications on prices of powdered milk, flour, gas and cement.
Hours after the withdrawal of the gazette, powdered milk importers decided to increase prices by Rs 250 a kilogram packet and Rs 100 a 400 gram packet with immediate effect.
Gas companies are holding talks with Consumer Affairs State Minister Lasantha Alagiyawanna on new price.The gas companies that were called for a discussion on Friday have been asked to submit their proposals.
Litro Gas has requested for an increase of Rs. 1,200 on a 12.5 kg cylinder and pointed out that the increase will only help to cover their cost.
In August it requested approval for a Rs. 600 price increase but that was when the world market price was $600 a metric tonne.
“But this month the world market price had increased to $860,” Litro’s Sales and Marketing Director Janaka Pathiratne said.
Meanwhile, Laugfs said it was working on its price factor.
Laugfs already has been granted approval for a price increase of Rs 383 on a 12.5 kg gas cylinder.
But despite the increase the shortage of Laugfs gas persisted with people waiting in long lines to buy gas.
The highest price consumers paid for gas was in 2013 when a 12.5 kg cylinder cost Rs. 2396. But the dollar stood at 162 to the rupee then.
The Government’s move to lift maximum retail prices (MRP) on several food items including cooking gas, powdered milk, wheat flour and cement by a gazette notification on Friday was a grave injustice to consumers, rights activists said.
They said that removing the price ceiling on essential items would give traders the licence to increase prices arbitrarily.
The National Association for Consumer Rights Protection (NACRP) said the Government had deceived the people for months imposing hardships on them and giving false promises that the prices of goods would not be increased .