Prices of essentials to go up as plans go awry

By Nadia Fazlulhaq

Traders are planning to increase the prices of essential goods during the upcoming Sinhala and Hindu New Year season following the unsuccessful attempt made by newly appointed Trade and Consumer Affairs Minister Bandula Gunawardena to bring down prices.

Old Moor Street Trade Association president Palaniandy Sunderam said the Government had provided the traders with a duty waiver from December 15, 2006 to February 15 this year and agreed to extend the duty concession.

However, after February 15 the importers learnt they had to pay duty before clearing their goods from the Customs.

“Now we have to pay duty to clear the goods from the Customs. Most traders were shocked and angered when they found the Government had slapped the duty.

Some traders, believing the duty concession would continue, had placed big orders. While some importers were raising the issue and did not clear the goods, those remaining in containers would go bad, bringing losses for which the public would ultimately have to bear the cost,” he said.

According to Mr. Sunderam among the goods prices of which are set to increase were sugar, chillies, potatoes, big onions, red onions and sprats.

“The duty on a kilo of onions was Rs.20 and by Friday a kilo was sold in the wholesale market for Rs.70, as against the previous price of Rs.41.50 per kilo before the duty was slapped. With the duty a kilo of potatoes would cost Rs.70 and dried chillies Rs. 165 per kilo in the wholesale market. These goods will be sold at a higher price in the retail market,” he said.

The Essential Food Commodity Importers and Traders Association (earlier Pettah Trade Association) president S.P. Samy said a quick solution from the Government was being awaited, failing which it would not be practical to sell these commodities at a lower price.

“The Government wanted us to reduce prices by giving us a duty concession but after February 16 we cannot clear our goods unless we pay the duty to the Customs. Today around 300 containers are held up at the Customs and most of them include essential items such as big onions, red onions and dried chillies,” Mr. Samy said.