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Selling above maximum retail price: CAA on the hunt

12 Apr 2020

By Maheesha Mudugamuwa The Consumer Affairs Authority (CAA) is on high alert for any vendors who sell food items above the maximum retail prices (MRP) imposed by the Government. Speaking to The Sunday Morning, CAA Director Asela Bandara said the authority would take strict legal action against those vendors who sell food items above the MRP. Acting under the powers vested in it by Section 20(5) of the CAA Act, No. 09 of 2003, the authority orders that no importer, producer, distributor, or trader shall sell, expose, offer for sale, or display for sale the varieties of rice listed below, above the maximum retail prices given hereunder with effect from 10 April 2020. Accordingly, the MRP prices of rice varieties including keeri samba, white/red samba – white/red raw samba, steam2ed/boiled white/red nadu, and steamed/boiled white/red raw rice Rs. 125, 90, 90, 90, and 85 respectively. In addition, a controlled price of Rs. 65 per kilo for dhal and Rs. 100 for a 450 g tin of fish, was imposed with effect from 18 March following the announcement made by President Gotabaya Rajapaksa. However, as highlighted by many consumers, the items for which the Government imposed an MRP were not available in markets for those controlled prices and instead, the consumers had to pay higher prices for most of these items. When The Sunday Morning contacted the Sri Lanka Trade Development Council (SLTDC) Chairman Roshana Waduge, he stressed that the council had instructed the importers who are members of the council to adhere to government rules and regulations and not get blacklisted as it would affect future business. At present, there are no shortage of food items in Sri Lanka but there are complaints of several items being sold at higher rates than the government-imposed MRP, Waduge stressed. Meanwhile, local food importers claimed they are in a quandary as the import cost of food items are higher than the MRPs imposed by the Government and the situation got worst with the recent rapid depreciation of the rupee against the US Dollar. A member of the Colombo Importers Association Alshafa Yoosuf told The Sunday Morning that though business was not profitable, they continue the supply considering the prevailing situation of the country. Yoosuf is an importer of many essentials including onion, potatoes, sprats, dry chilies, and dhal. Comparing the MRP and the import cost, he stressed that it was hardly enough to cover the expenses. “We imported big onions recently which cost Rs. 130 per kg but in the market, the MRP never goes above Rs. 110 per kg. If it’s only 100 kg, we can manage but when its about 2.5 metric tonnes, it is a huge loss for an importer,” he stressed. Main essentials are still being imported into the country and there was a halt of essentials coming from India but from other countries such as Canada, Australia, Holland, Pakistan. and Thailand, the imports were still continuing, according to Yoosuf. As learnt by The Sunday Morning, the Cabinet has decided to provide the subsidies for co-oporative and Sathosa outlets to keep selling tinned-fish and dhal at the controlled prices. When queried, the Prime Minister’s Officer denied such a decision had been taken by Cabinet. Sathosa Chairman Nushad Perera noted that all Sathosa outlets countrywide were still selling dhal and tinned fish at controlled prices and there was no change in that.


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