AKD exposes nexus between wheat flour monopoly and campaign financing

Thursday, 20 July 2023 03:16 - - {{hitsCtrl.values.hits}}

NPP leader Anura Kumara Dissanayake

Accuses importers of financing politicians in exchange for maintaining a market monopoly
Says it has allowed importers to continuously reject price reductions and earn undue profits
Claims that a kilogram of wheat flour can now easily be sold at Rs. 160

In a dramatic disclosure during the parliamentary session yesterday, National People’s Party (NPP) leader Anura Kumara Dissanayake accused two prominent wheat flour importers in the country of financing politicians at elections in exchange for the ability to establish a market monopoly.

According to Dissanayake’s statement, the alleged arrangement between the wheat flour importers and politicians has allowed the companies to effectively reject price reductions and withhold the advantages of global market price decreases from local consumers.

The NPP leader noted that while the current selling price of wheat flour is at Rs. 210 per kilogram, the importers even after accounting for a tax of Rs. 35 could still lower the price of a kilogram of wheat flour to Rs. 160.

According to the MP, the cost of importing one kilogram of wheat flour from Turkey amounts to approximately Rs. 110 which includes the expenses incurred in landing the product at the port. He also revealed that the Government has reportedly eliminated the tax of Rs. 35 rupees per kilogram on flour.

Dissanayake asserted that despite the removal of the tax on wheat flour, consumers have not experienced the corresponding reduction in prices. Instead, he alleged that companies are reaping undue profits by not passing on the benefit of the tax reduction to the end consumers.

Furthermore, the MP pointed out that the Government had made promises to grant import licences to wheat flour importers following the ban on imports. However, he emphasised that no such licences have been issued thus far.

He alleged that the Government has facilitated a monopoly in the wheat flour market by favouring two multinational companies. Additionally, Dissanayake claimed at least one company has provided financial support to election campaigns of consecutive Governments that came into power.

The MP accused the current Government of also allowing these companies to accumulate excessive profits allegedly motivated by the expectation of receiving campaign funds in the future. (MB)