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Government signals price hike on essentials 

22 Sep 2021

  • Alagiyawanna says move inevitable due to global prices 
  • Decision this week on rice, milk powder, flour, gas, cement prices 
By Shahaen Vishak  The prices of several commodities, namely milk powder, flour, gas, and cement, are to be increased to reflect global price changes, and the Government will take a decision in this regard within the week, according to State Minister of Co-operative Services, Marketing Development, and Consumer Protection Lasantha Alagiyawanna.  Speaking to the media at the opening of a Q-Shop outlet yesterday (21) in Colombo Fort, Alagiyawanna stated: “Definitely, in practical terms, we will have to resort to some kind of price hike, considering the increasing prices on the world market; especially for rice, flour, milk powder, cement, and gas. A decision in this regard will finally be taken this week.”  Minister of Trade Bandula Gunawardana was also present at the launch of the outlet but did not elaborate on the matter.  When contacted by The Morning for clarification, Co-operative Services, Marketing Development, and Consumer Protection State Ministry Secretary K.D.S. Ruwanchandra said that if State Minister Alagiyawanna had stated the above, there is nothing for him to add.  Similarly, Trade Ministry Secretary Bhadrani Jayawardana told The Morning that further clarification should be sought from Minister Gunawardana or State Minister Alagiyawanna on the matter, as they had been present when the statement was made.  However, she conceded that discussions on a price hike have taken place.  “There are ongoing discussions with the importers, who have been continuously asking for a price increase due to the changes in global market prices.”  Of the commodities mentioned above, there have been complaints of a shortage of gas and milk powder, while several incidents of rice mill owners hoarding stocks of rice have also been reported.  In this backdrop, President Gotabaya Rajapaksa announced on 30 August that emergency regulations on the provision of essential foods would be implemented, with Maj. Gen. M.D.S.P. Niwunhella appointed the Commissioner General of Essential Services to co-ordinate the supply of paddy, rice, sugar, and other consumer goods. These regulations were subsequently passed in Parliament on 6 September.  Although the decision came under fire from various quarters, including the Parliamentary Opposition, many Government Members of Parliament (MPs) maintained that the regulations were not imposed due to a shortage, but to control the hoarding of essential commodities by unscrupulous traders seeking to fetch higher prices for their goods.


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