Consumer prices soar as lockdowns cripple supply chains

The consumer prices are surging at exponential levels, as lockdown-styled restrictions on wide swathes of economic activities have crippled supply chains in almost every sector, leaving the hapless consumers to contend with sky-high prices for even their essentials, while millions of low-income families struggle to make their ends meet.

The vegetable prices at both wholesale and retail markets this week saw surging at multiple times from a week earlier, predominantly due to low supply. 

According to the daily price report by the Central Bank, the prices of the nine most common vegetable varieties in the Pettah retail market have risen by between 15 percent and 77 percent during the week through June 9, barring a few categories such as tomato, pumpkin, snake gourd and lime, of which prices didn’t change. 

However, the prices of the same nine varieties, with the exception of pumpkin, rose by between 15 percent and 88 percent from May 3, when the markets were uninterrupted by the myopic lockdowns a week later.

For instance, for beans, people were paying Rs.240 a kilogram on June 9, compared to Rs.160 a kilogram on June 3. 

“Price of beans further increased in the Pettah market compared to yesterday, due to low supply from the Nuwara Eliya and Balangoda areas,” the Central Bank said. 

Meanwhile, for green chilli, people spent Rs.300 a kilogram this week, nearly twice from Rs.170 a kilogram on June 3.

The ongoing inclement weather is also adding to the woes facing the producers and farmers.
Troubled by the massive jump in prices, even some of the mobile vendors turned back their trucks without loading vegetables this week while others purchased only a little, just enough to make a living for the day, as they are aware that they are unable to sell them at these prices.  

Meanwhile, at the other end of the spectrum of the supply chain, famers have been forced to throw away their produce made with great pain, sacrifice and money, as they complained no one was coming to purchase their produce. 

Sri Lankans are contending with higher food prices, which are rising by nearly 10 percent every month from year earlier levels. 

Mirror Business earlier showed that for rice and coconut oil, people are spending nearly 50 percent more than what they paid a year ago.