• Intends to ease cost of living, ensure availability via competitive importation process
• State Minister Alagiyawanna says increased paddy prices a key reason for hike in rice prices
• Lanka Sathosa and Co-op movement agree to provide locally-produced brown sugar at Rs. 125 per kg
• Allows 3 local manufacturers to import 30,000 tons or 600,000 bags of cement to ease shortage
• Says Govt. will not deviate from responsibility of protecting consumers

The Government yesterday assured essential food would be made available at reasonable prices within the next two weeks, following recent measures taken to ease supply chain constraints.

“We admit that the people are faced with great difficulty at present due to increased prices and short supply of essential items. The Government has already taken swift measures to allow imports and thereby ease the supply constraints within the next two weeks,” Cooperative Services, Marketing Development and Consumer Protection State Minister Lasantha Alagiyawanna said yesterday.

He said the intention of the Government was to ease the cost of living and ensure availability of essential food items through a competitive importation process.

On Wednesday, the Consumer Affairs Authority (CAA) cancelled seven gazette notifications to remove the Maximum Retail Price (MRP) on 14 commodities, paving the way for flexibility in pricing by importers and traders

In addition, Finance Minister Basil Rajapaksa reduced the special commodity levy of Rs. 65 per kg to 25 cents from 2 November for a period of six months.

Alagiyawanna said the increased paddy prices was a key reason for the hike in rice prices at present. “However, the importation of rice stocks will not impact the local paddy farmers,” he claimed.

With regard to sugar, he said the State-run Lanka Sathosa and Co-operative movement had agreed to supply locally-produced brown sugar at Rs. 125 per kg.

Noting that sugar prices in the market had increased to over Rs. 200 kg, he said many importers had begun to ship sufficient stocks which would be available within the next couple of weeks.

The State Minister said the MRP for sugar was removed as importers assured required foreign exchange availability to import sufficient stocks.

Alagiyawanna said three local cement manufacturing firms had also been allowed to import 30,000 tons or 600,000 bags of cement to ease the shortage countrywide.

“The shortage of cement is due to the high world market prices and lack of raw materials such as coal and paper packages,” he added.

Therefore, the State Minister said it was jointly decided by the Central Environmental Authority (CEA), Sri Lanka Standards Institute (SLSI) and Consumer Affairs Authority (CAA) to allow cement imports in Polyflor sustainable bags.

“The quality of cement will be assured,” he said, adding that 75% of the demand was produced locally. 

He also said the shortage of LP gas would be resolved by next week, as companies had agreed.

Assuming that global market prices drop and economic activities return to normalcy, Alagiyawanna said traders would also have to revise prices downwards in the local market.

“The Government will stand to protect the consumer, and we will not move away from that responsibility,” he added.

Food industry fears looming crisis amidst supply-demand imbalances