Despite the Government’s plan to control the maximum wholesale and retail prices of ten essential food items, there is little change in the markets, while prices of other food items have increased in the past week in view of the coming Christmas season.
After the Government announced a maximum wholesale price on ten food items including sugar, dhal and potatoes, varying retail prices were recorded in different markets. Traders complained that it would take at least a month before they could purchase new stocks and sell them at the stipulated prices.
The Government then announced that 131 Laksathosa outlets around the country would sell these items at the stipulated prices with immediate effect forcing some private traders to reduce their prices, while others complained that pro-government groups were forcing them to sell these items at the stipulated prices, thus incurring losses.
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| Consumer Affairs Minister Gunawardena handing over a special budget pack to President Mahinda Rajapaksa |
However, the real situation is that wholesale and retail prices have not been reduced as planned and traders are still unable to reduce prices of their stocks which were bought before the Government’s implementation of import tax cuts.
Items such as potatoes for which a maximum wholesale price of Rs. 65 per kilo and a retail price of Rs. 74 per kilo were fixed, are still selling at the Pettah market for as much as Rs.120 per kilo. Red onions too are being sold at Rs. 130 per kilo when the retail price was expected to come down to Rs. 86 per kilo. Dhal is priced around Rs.160 per kilo while the Government fixed price is Rs. 149 per kilo. Dried chillies are still priced around Rs.10 more than the retail price stipulated.
Old Moor Street Traders Association president K.P. Sundaram said that the situation in the Pettah market is deteriorating fast as traders are unable to sell their goods at the prices fixed.
“Many traders are being threatened and told to sell the essential food items at the Government stipulated prices. Mostly it is the small traders who are affected badly because they cannot bear the losses,” he said.
He said that the Government, through the CWE, had sold a kilo of rice to traders at Rs.103 but they are now being forced to sell it at Rs.85 per kilo to consumers and asked to bear the losses on their own.
“If this kind of situation continues then traders won’t sell their goods but will hoard them until the situation eases. This may lead to a shortage of various food items in the market,” he said.
Mr. Sundaram said that with the Government intervention in the pricing of essential food items, consumers and traders alike could face far worse consequences. He said it was necessary for prices to come down on their own once newer stocks come into the market.
Meanwhile, vegetable prices are also on the rise in the coming season. Prices of vegetables such as carrots, tomatoes, cabbage and pumpkin amongst others have increased over the past week.
A kilo of carrots is currently being sold at Rs.120 which is an increase of Rs.30 per kilo since last week while cabbage and brinjal prices too have increased by Rs.20 per kilo. Pumpkin and ash plantains are currently sold at Rs. 50 per kilo and Rs. 90 per kilo, respectively, which is an increase of Rs.10 per kilo. Snake gourd prices have increased a further Rs.25 per kilo while tomato prices have increased to Rs.55 per kilo from Rs.50 per kilo last week. The price of an egg has increased by around a rupee as well.
With these increases in the market the Government along with the State Trading Corporation introduced a special budget pack of five essential items which will be available throughout the country.
The pack will comprise a kilo each of kekulu rice, red dhal and white sugar, a 425 gram pack of canned fish and 500 grams of chickpeas, priced at Rs.490.
Trade and Consumer Affairs Minister Bandula Gunawardena said the public will be able to buy these budget packs anywhere while stating that the total price of these items before the import tax reduction was over Rs. 700.
Consumers would be able to purchase this concessionary budget pack at any Laksathosa, Co-op City or supermarket outlet in the island. |
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