3 January 2020 09:38 am Views - 400
A survey commissioned by the Advocata Institute in April 2019 had revealed that 57 percent of Sri Lankans were unwilling to pay extra for food, even if it meant to protect the local agricultural industry.
This survey covered 855 respondents in 18 districts within 8 provinces in Sri Lanka.
The demographic variables considered were age, gender, educational qualifications, socio-economic class, and monthly household income.The survey also revealed that the lower the Socio-Economic Category (SEC), were the less willing respondents to pay extra for their food, to protect the local industry. SEC is the category to which an individual falls into based on his/her education and occupation.
It was only in the highest SEC where 51 percent answered ‘yes’, agreeing to incur a higher cost of living at the cost of protectionist taxes. SECs following it were increasingly reluctant to pay more for food, even if it meant that local businesses were protected.
Lower-income households spend most of their income on food according to the Household Income and Expenditure (HISE) Survey. Lower the income level, the higher the proportion of their expenditure on food-related items.
The survey also noted differences across provinces. Respondents from the North Central and Sabaragamuwa provinces were more willing to incur higher food costs, with 64 percent from the North Central Province and 61 percent from the Sabaragamuwa Province answering ‘yes’.
In contrast, only 22 percent of respondents from the Southern Province and 24 percent from North Western Province answered ‘yes’.
Interestingly, 72 percent of males were unwilling to bear the burden of higher cost for food according to the survey. To put this into perspective, Sri Lanka has 4 million male-headed households (Household Income and Expenditure Survey, 2016).
“Sri Lanka has a high cost of living compared to its peers in the region. Tariffs and protectionist taxes on food items, some close to 100 percent, mean that consumers will continue to suffer at the expense of ill-framed policies,” Advocata Institute Chief Operating Officer, Dhananath Fernando said.