22 July 2023 12:00 am Views - 125
By Ajith Siriwardana and Yohan Perera
The two companies that import wheat flour to Sri Lanka refused to reduce prices of flour despite a request made to do so, Trade Minister Nalin Fernando said yesterday.
The Minister told Parliament that the two companies have become strong as they have a monopoly in the market and pointed out that competition should be created in the market to decide on competitive pricing for flour.
“At least 30 per cent of flour import should be given to other importers, while 70 per cent should be given to the two main companies to maintain a competitive price. Before the import of flour was banned, we managed to import it and provide a kilo of flour for Rs. 165 at a time flour prices have gone up to Rs. 430. However, the Finance Ministry banned the import of flour and introduced a licence system. Issuance of licence should be done by the Finance Ministry,” he said. The Minister said this in response to a question by MP Dayasiri Jayasekara, who said two companies engaged in flour import have been allowed to earn an undue profit by giving them a monopoly in the market and removing Rs. 35 tax, which is a loss to the government.
The Minister said after the two companies refused to reduce prices, he as the subject Minister declared flour as an essential commodity.