News

News

Flour war: Minister all out to bake Prima monopoly
The battle between the government and the Prima company is hotting up to breaking point but the unkindest cut might be on the consumer with Prima threatening to increase the price of flour to Rs. 42.50 a kilo.

The government battle against Prima is being led by Consumer Affairs Minister Jeyaraj Fernandopulle who on Wednesday obtained cabinet approval to cut the subsidy given to Prima and import 35,000 tons of flour a month from India to end Prima's monopoly.

But Prima hit back with a spokesman saying the company would be compelled to raise the price of flour - currently between Rs. 25 and 35 - to as much as Rs. 42.50 a kilo.

He said if the subsidy was cut the company would have no option but to add the cost to the price and it could eventually be passed down to the consumer. Minister Fernandopulle said Prima had at present produced about 55,000 tons a month and the import of 35,000 tons from India would stabilize prices and the market.

Top

Back to News