Wallet worry

Wednesday, 14 December 2011 00:01 - - {{hitsCtrl.values.hits}}

PROTESTS at all the main markets over the use of plastic crates have provoked the Government to introduce even more stopgap measures in a futile endeavour to save face. People were greeted to a second day of demonstrations and key conduit points for fruit and vegetable trade remained under virtual lockdown as people struggled with suddenly-spiked prices.

Consumer Affairs Minister Johnston Fernando remained stoic during the countrywide outpouring of anger on Monday as vendors dumped vegetables on roads, burnt crates and tyres and brought trading to a halt across the county to protest the new law. After several rounds of discussions, the main issues seem to have had solutions presented, but it is contentious whether these are well-thought-out solutions.

Fernando told the media after a meeting with the Manning market traders that he had agreed to several modifications, with the Government providing a space for the plastic crates at the Narahenpita Economic Centre. The Ministry would also take care of transporting the crates to the farmers by using lorries from Sathosa and even introduce a system for them to rent crates at Rs. 50 a week. On the surface these kneejerk responses seem reasonable, but their sustainability remains doubtful.

Sathosa, as everyone knows, is a notoriously mismanaged institution that cannot even do its given task properly, which means that efficiently transporting plastic crates to farmers on a daily basis is bound to be rife with problems. Moreover, the cost for storing and transporting the crates will have to be borne by the consumer – for whose benefit the new law was introduced in the first place.

So now consumers have to face a new situation where they not only have to shelve out more money for vegetables, but also pay for the lorries and crates purchased by the Government, After all the tax burden will be passed back on to the people. The rent of the crates will be passed back on to consumers as will the cost for the new lorries, drivers, crates, fuel and delay in setting up the system. The absurdity of the situation seems to have no bounds.

Let it be noted that this is not a criticism of the Government’s attempt to reduce post-harvest losses, which is a dire need, but the means to that end are severely lacking in practicality. Introduction of plastic crates would have been a good move had the Government taken into account several other requests that have been pending before it for a long time.

One dire need is to build infrastructure to connect the different economic centres such as Dambulla to Colombo so that there is a cost effective mode of transportation. Railway has been suggested time and again for this so that farmers have an alternative and efficient way to send their goods to market. If transport costs are reduced and the monopoly of the middlemen is broken, then there is more chance for prices to reduce.

Another less expensive method would be to build cool rooms and storage facilities in the economic centres so that thousands of kilos of vegetables and fruits that are dumped on a daily basis can be stored and transported to Colombo and other urbanised areas for consumption. These ideas might have made a little bit more sense, but intervention in the wrong way has left everyone worrying about their wallets.