Key wheat flour suppliers accused of raking in billions in undue profits amid import ban

• Ban on unlicensed wheat flour imports under scrutiny as COPF investigates   
• Trade Minister says wheat flour prices can be reduced further

By Kelum Bandara   

The local wheat flour suppliers are facing allegations of reaping substantial undue profits in billions of rupees following a government-imposed ban on unlicensed wheat flour imports, as revealed during a recent meeting of the Committee on Public Finance (COPF).  The COPF, a crucial parliamentary body tasked with overseeing public finance matters, met yesterday under its acting chairman Patali Champika Ranawaka. The discussions centred on the ban enacted on June 14, 2023, which coincided with a global decline in wheat flour prices.   

Mr. Ranawaka told Daily Mirror that he intends to present a comprehensive report to Parliament in the upcoming week, outlining the precise magnitude of the profits allegedly garnered by these two companies.   

“They have made huge profits amounting to billions. I will reveal the exact amount which is now being calculated,” he asserted.   

Trade Minister Nalin Fernando responded to the allegations, acknowledging that the Finance Ministry introduced the import ban to safeguard domestic industries and conserve foreign exchange reserves. However, he conceded that the two companies in question were operating with elevated profit margins.   

“Even when wheat flour was imported with a tax of Rs.35 per kilo, we observed it being sold at Rs.160 per kilo. While global market prices have experienced fluctuations due to the ongoing conflict in Ukraine, as a significant wheat supplier, we believe that wheat flour can be sold at a price at least Rs.15 lower than the current local market rates,” he said.