Cost 
              of living: it’s do or die now  
               
              By N. Dilshath Banu  
              The recent increase in the price of gas and milk powder which followed 
              the earlier fuel price hike has sent the cost of living soaring, 
              hitting both consumers and producers, whether they are housewives, 
              those selling packets of lunch or grocery or restaurant owners. 
               
             Raja 
              earns a living by selling packets of lunch for nearly one year, 
              near the Colombo University. "We have been forced to increase 
              the price by about 10 to 15 rupees but the quality of our lunch 
              is not affected and we are hoping to maintain the same standards. 
              But we don't get big profits these days as people prefer to bring 
              food from home, which would cost less, rather than buy food from 
              outside," he said.  
             Mr. 
              Peiris who works in the university library says that although the 
              price of a packet of lunch has gone up, quality has gone down. "I 
              have been working here for nearly 20 years, and in the early days 
              a packets of lunch cost only 1 to 2 rupees but now there has been 
              a huge increase. Prices of short eats are also high, and eating 
              a few of them costs more than consuming a packet of lunch," 
              he said.  
             However, 
              the leading food distribution outlets, which has fixed prices for 
              food items and targets a middle class clientele do not seem to be 
              affected by the price hikes. Three-wheeler drivers who are directly 
              affected by the fuel increase say they are unable to increase their 
              fares due to fear of losing their regular customers.  
             People 
              are now using alternative ways to reach their destinations rather 
              than spend money on three-wheelers. Nimal Pushpakumara, a three-wheeler 
              driver near the National Hospital said: "If we increase the 
              price people will not hire us. Usually, we charge Rs. 30 as the 
              minimum fare.  
             We 
              want to increase it by Rs. 10 as a result of the fuel price hike, 
              but so far we haven't succeeded. Earlier, I used to earn more than 
              Rs. 700 a day, but now it's less than Rs. 500."  
            Meanwhile 
              the price of vegetables has increased. A kilogram of carrot or leeks 
              which costs between Rs. 50 and Rs. 60, now costs around Rs. 96 a 
              kilo and while beans sold at around Rs. 60 a kilo, they are now 
              priced at Rs. 80 a kilo.  
             K.W.Gamini, 
              a wholesale dealer at the Manning Market said that the increase 
              in vegetable prices brings more profits to him and other wholesale 
              dealers, though it is a burden to consumers. "We increase prices 
              based on supply and demand. If there are more vegetables, we have 
              to sell at a lesser price. On the other hand, if the supply is reduced, 
              we have to increase the price. Fuel price hikes will have an impact 
              on pricing but supply and demand has a greater impact on prices," 
              he said.  
             Mohamed 
              Hassan who runs his own grocery shop at Maradana says the past two 
              years there had been many price changes. "When we started this 
              shop, a packet of Anchor milk was sold at Rs. 105 but now it costs 
              Rs. 165.  
             A 
              cake of Sunlight soap was sold at Rs. 15 and now it is Rs. 19. When 
              prices go up, customers complain that we hoard stocks until the 
              price goes up, to sell at the higher price but that's not true. 
              We can't sell items at the old price, once the price is increased. 
              Although, we are not running at a profit, we are somehow surviving 
              on our day to day sales," he said.  
             Neeta 
              Madurangani, a housewife says that even a one rupee increase in 
              a consumer items makes a big impact. "My family depends on 
              my husband's salary and though the month is not over, the salary 
              is no more. In addition to the needs of my three children, bills 
              are consuming our money. This time, there is an additional increase 
              in the water bill which is very hard on us. Although the Government 
              had increased salaries by Rs. 2,500 the unending expenditures has 
              eaten into it. Saving money in these days is unimaginable," 
              she said.  
             Meanwhile, 
              the Inter-Ministerial Committee on Food Security, a body created 
              to monitor the cost of living and price hikes, has not been summoned 
              for nearly five months.  
            However, 
              Trade, Commerce and Consumer Affairs Additional Secretary Janaka 
              Sugathadasa said UPFA party leaders meetings has taken its place. 
              "The former committee was able to bring down the price of rice 
              when the rice price was escalating by importing rice. Now matters 
              relating to the cost of living are discussed with other issues at 
              the UPFA party leaders meetings. Though it is a political meeting, 
              relevant secretaries are invited to discuss related issues," 
              he said.   |