Discussions continue on flour price hike

Tuesday, 26 April 2011 00:08 - - {{hitsCtrl.values.hits}}

By Shezna Shums

Whilst the price of flour continues to remain at the revised rate, discussions between the government and the flour companies are still continuing. A consequence of the revised flour price is that a loaf of bread has now been increased by Rs. 2 and other flour based products are also seeing higher prices.

Consumer Affairs Authority, Chairman, Rumy Marzook told the Daily FT that they have sent letters to the flour companies informing them that legal action will be taken if they continue to sell at the new prices.

Last week the CAA had sent these letters to the companies and is yet to receive a response from them.

The CAA urges both Prima Flour Company and Serendib Flour Mills (Pvt) Ltd. to go back to their old prices for flour.

Meanwhile Serendib Flour Mills (Pvt) Ltd, CEO, Sathak Abdul Kadar said that they had a first meeting with the relevant government organisations, but today (26 April) or tomorrow (27 April) they hope to have their second meeting with the Ministry of Internal Trade and Co-operatives and the CAA. These discussions are solely for the purpose of coming to an agreement regarding the price of wheat flour sold by the two companies.

However Kadar says that flour continues to be sold at the new revised price.

The CAA however is firms that legal action would be taken if flour companies revise their prices without the authority of the CAA.