Govt. intervenes to ensure no wheat flour price increase 

An employee weighs flour at a Sathosa outlet - AFP 

By Charumini de Silva

The Government yesterday announced that the two main companies importing wheat flour have assured that there will be no increase in prices.

“The Secretary to the President and Treasury Secretary have had a meeting with the two companies’ representatives in relation to the price increase of wheat flour. Following the meeting, the two companies have submitted in writing that the prices will not be increased by Rs. 12,” State Minister of Consumer Protection Lasantha Alagiyawanna said at a media briefing yesterday.

Previously, the All Ceylon Bakery Owners Association (ACBOA) claimed that the wheat flour prices have been increased by Rs. 12.

The State Minister pointed out that strict measures were necessary to offer relief to the public amidst the pandemic. 

“We did not like to enforce the Maximum Retail Price (MRP), as it has negative impacts on the market, too. The more practical way to decide on price was supply and demand. But even after many warnings and laws in place, traders were trying to take undue advantage of the situation to make profits. All these developments made the Government enforce strict rules,” he added. The prices of rice and sugar have increased uncontrollably amid the COVID-19 pandemic, despite various measures within the existing legal framework by the Trade Ministry, State Ministry and the Consumer Affairs Authority (CAA).

In this background, President Gotabaya Rajapaksa, on 31 August, ordered emergency regulations to counter the hoarding of sugar, rice and other essential foods. Rajapaksa also appointed Major General Senarath Niwunhella as the Commissioner General of Essential Services.

Essential food items rice and sugar came under the MRP regime with effect from 2 September.

He also stressed that there is no comparison to the socio-economic crisis the country is passing through, adding that the shrewd behaviour of the traders is unacceptable in every possible way.

Alagiyawanna said the implementation of the emergency regulations has positively resulted in traders now selling sugar and rice at the Government-stipulated prices.

He said 35,000 tons of sugar in five State-owned warehouses have disbursed 3,000 tons to the Government-run Sathosa retail network and 1,000 tons to cooperatives. The disbursement of sugar stocks to private supermarket chains, the confectionery industry, and retailers (via District Secretariats) has also begun.

To ensure MRPs are adhered to in the marketplace, 2,000 Development Officers will be seconded to the CAA for a period of one month.

The State Minister said the Government will purchase sugar stocks from importers if they are able to give at Rs. 90 to Rs. 100, which will be distributed through Sathosa and cooperatives.

The CAA yesterday raided 10 warehouses in Anuradhapura District and three in Vavuniya District which were hoarding paddy. 

Alagiyawanna also said the importers have requested the provision of reasonable compensation for the stashed stocks from the Essential Services Director-General. 

“After these companies submit their requests in writing, the Essential Services will evaluate and finalise on a compensation price. The funds of this will be credited to a Sathosa account,” he explained.

The Government reiterated that there is no shortage of essential food items in the country.