Two flour importing companies refuse to reduce prices: Minister

• Says at least 30 per cent of flour import should be given to  other importers

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.            

•  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