Government’s claim vs. skyrocketing prices and Christmas time blues

By Nadia Fazhul Haq

Despite Government’s decision to cut import duty on certain essential goods to bring down the prices during the festive season, consumers complain that they have not received the benefits and may not see a price reduction until the season is over.

The decision was taken in mid December and by that time traders had already imported goods and many consumers too had purchased dry rations.

Authorities say that goods with reduced prices are now available at CWE outlets. Unfortunately it’s impossible to cater to a large number of festive shoppers with only 50 outlets.

Traders complain that it is ineffective to take off the tax for a few weeks this month and start enforcing it again from the 1st January, leaving no benefits to either the consumers or the traders themselves. Shoppers complain that prices are higher than in previous months.

The numbers of festive shoppers coming into Colombo has been drastically reduced due to price hikes and security concerns.
Chandrakanthi (40) who had come from Kaduwela to Manning Market, in Pettah said that though government politicians shout from rooftops of reduced prices, the shouts of vendors marketing their wares are a constant reminder of the sky rocketing prices. They say that old stock is being sold, consumers have not benefited by the taking away the import duty she said. She added that ultimately only the Traders would benefit from the move.

Shenali (35) a mother of three who had come to Pettah for Christmas shopping said,“this year the prices are unbearable, so we have decided to prepare food in smaller quantities this Christmas”.

Sugathapala (64) is a regular shopper of the Pettah market. “The prices of all essential goods are very high in shops and markets. Only the CWE outlets have a price reduction. But it’s impossible to find a CWE outlet to buy these goods” he said.

The Sunday Times also learns that basic food items have skyrocketed despite the Governments assurance to cut down on import duty.

The Government waived import duty on red onions, green gram, dried chillies, canned fish, dry fish, shrimps, Maldives fish and cowpea while taking away the Rs. 5/- import duty levied on wheat flour. The import duty of Rs. 20/- on potatoes and B. onions also had been removed, but at retail and wholesale markets the prices have not been reduced.

K. Pulanianty Sundaram, President of the Old Moor Street Trade Association said many traders were selling stocks they had already purchased and on which they had already paid tax on. They won’t be reducing the price just because the Government says that the import duty had been removed taken off last week. He said consumers would not be affected by the removal of the tax levy and there would be no price reduction during the month. He warned that it might take time before the effects of the raising of import levy was felt.

He said traders had imported essential goods before the Government’s decision came into effect. Traders being aware that this was a time prior to the harvest had already imported essential goods he said.

Gunasena Widanapathirana (56) from Katubedda who has been a vegetable seller at Manning Market for more than 30 years complained that the number of shoppers visiting the market was low compared to the numbers at this time last year. He blamed security concerns as being a major cause for this. He added that quantities of vegetables coming from the upcountry areas was low due to the prevailing weather conditions. He warned that if the trend continued further price increases were inevitable.
Nandasiri Samarasekara, a fruit supplier in Pettah said that while the price of tropical fruits had dropped prices of imported fruits had risen exorbitantly.“Last year a large box of American apples cost Rs. 2,200/-, but now its Rs. 4,200/-. It’s the same with imported oranges and grapes” he said.

Dunstan Raja comes with his wife and son on shopping once a month. Last year a kg of tomatoes was fifty rupees he said, but today the cost of a kg of tomatoes has risen to hundred and fifty rupees. It’s the same with all vegetables he added. “We come all the way to the Pettah wholesale market because the prices are so high which we cannot afford” he said.

Meanwhile Additional Secretary of Ministry of Trade and Commerce, Janaka Sugathadasa said that the Ministry with the help of CWE had imported 1000 metric tons of potatoes from Pakistan and onions from India to control rising prices.

“These goods are available in all the 50 Sathosa outlets. Anyway we cannot stop the rising of prices in this season. This year there is a 20% increase in the prices of vegetable due to the unusual weather” he said.

Nihal Jayaweera a shop owner in Pettah had a somewhat different view.People tend to have a lunch packet or place an order for food rather than buying dry rations and other essential goods he said. He claimed this was the reason for a drop in sales this year. People are doing less festive shopping this year, he said.

The prices of goods which are in demand during the Christmas season have also skyrocketed.

A scarcity in wheat flour was noticeable even at wholesale distributors. The retail price of flour was between Rs.45/- to Rs.50/- per kilo. Prices of cashew nuts and raisins have also increased. Today cashew nuts sell at Rs.400/- per kg and raisins at Rs.220/- per kg, while the price of an egg ranges between Rs. 11/- and Rs.12/-, and the price of a kg of sugar has shot up to Rs.54/- per kg.

Many people complained that since prices have sky rocketed it was cheaper to buy a cake than buying the ingredients necessary to bake one.

“It’s a family tradition to bake a Christmas cake at home, but with the price of flour, sugar and eggs its better to simply buy a Christmas cake and save some money” Ms. Malinie Jayasinghe (41) said.