The Consumer Affairs Authority (CAA) announced last week that it had began checking retail shops to ascertain whether they are conforming to the new price of Rs. 155 a kilo agreed at a meeting between the Commerce Ministry and the All Island Poultry Farmers' Association.

A CAA spokesman was quoted as saying in a press release issued by the Commerce Ministry that tough action would be taken against those who did not reduce prices. He did not say what action is possible under the law.
The Commerce Ministry said it had received several complaints from the public that chicken prices had soared to as high as Rs. 210 a kilo in recent months.

Wanasinghe said that at the meeting with the Minister of Consumer Affairs producers insisted on a price of Rs. 175 a kilo of chicken, but the minister forced them to agree on Rs. 155 under threat of importing chicken.

The AIPFA feels the local poultry industry would be badly hurt the way the government was intervening in the pricing of chicken.

Wanasinghe said around 75,000 families depend on poultry farming and this type of senseless attitude would kill this flourishing local industry and lead to loss of jobs.

He said that big producers have been consistent in pricing but the small-scale farmers had raised prices to survive, having suffered losses when the slump in tourism resulted in a glut of chicken after the terrorist attack on the Katunayake international airport.

However, government officials said that under a free market policy it was possible to import commodities and allow market forces to bring down prices to help consumers.

Wanasinghe said that chicken is being used by Sri Lankan consumers as an immediate substitute for fish as fish prices had soared as high as Rs. 500 per kilo. If fish prices are brought down to reasonable levels, chicken prices would automatically stabilise.

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