News
Imports broadbased to reduce food prices
View(s):- Not only licence holders but other traders also will be allowed to import
By Damith Wickremasekara
In a fresh bid to control food prices, the government is to introduce a system for imports of essential food items by opening up the business without restricting imports only to licence holders.
The move is aimed at eliminating corruption in issuing licences for imports following revelations that the existing system was leading to an increase in food prices.
Among the essential food items would be dhal, sugar, potatoes, onions, and flour, while standards would be set for the imports.
President Ranil Wickremesinghe has submitted a Cabinet paper proposing to abolish the licensing scheme, and accordingly, a committee comprising Treasury officials and several ministries, including Agriculture and Trade, is preparing for the system to be implemented.
A new duty structure system is to be ready before imports of essential food items begin for the upcoming National New Year period.
The criteria for the imports and the requirements will also be introduced under the new system.
A senior official said that they found that public officials were involved in corrupt practices in issuing import licences, thereby giving a monopoly to some of the importers who could manipulate prices and regulate stocks in the market.
The official said the new system also envisages import taxes to protect local producers.
He said the system would be especially useful during festive seasons when the prices of food were artificially increased.
During a recent meeting with ministry officials, traders pointed out that they could provide canned fish at lower prices if the licensing system was removed.
Meanwhile, the Agriculture Ministry has submitted a cabinet paper to import cashew nuts from December to April, which is the off-season for the crop locally. Approval has been sought to import 15,000 metric tonnes of cashew annually for five years.
The cabinet paper said the objective was to manage cashew prices.
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