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Cost of living: it’s do or die now
By N. Dilshath Banu
The recent increase in the price of gas and milk powder which followed the earlier fuel price hike has sent the cost of living soaring, hitting both consumers and producers, whether they are housewives, those selling packets of lunch or grocery or restaurant owners.

Raja earns a living by selling packets of lunch for nearly one year, near the Colombo University. "We have been forced to increase the price by about 10 to 15 rupees but the quality of our lunch is not affected and we are hoping to maintain the same standards. But we don't get big profits these days as people prefer to bring food from home, which would cost less, rather than buy food from outside," he said.

Mr. Peiris who works in the university library says that although the price of a packet of lunch has gone up, quality has gone down. "I have been working here for nearly 20 years, and in the early days a packets of lunch cost only 1 to 2 rupees but now there has been a huge increase. Prices of short eats are also high, and eating a few of them costs more than consuming a packet of lunch," he said.

However, the leading food distribution outlets, which has fixed prices for food items and targets a middle class clientele do not seem to be affected by the price hikes.

Three-wheeler drivers who are directly affected by the fuel increase say they are unable to increase their fares due to fear of losing their regular customers. People are now using alternative ways to reach their destinations rather than spend money on three-wheelers.

Nimal Pushpakumara, a three-wheeler driver near the National Hospital said: "If we increase the price people will not hire us. Usually, we charge Rs. 30 as the minimum fare. We want to increase it by Rs. 10 as a result of the fuel price hike, but so far we haven't succeeded. Earlier, I used to earn more than Rs. 700 a day, but now it's less than Rs. 500."

Meanwhile the price of vegetables has increased. A kilogram of carrot or leeks which costs between Rs. 50 and Rs. 60, now costs around Rs. 96 a kilo and while beans sold at around Rs. 60 a kilo, they are now priced at Rs. 80 a kilo. K.W.Gamini, a wholesale dealer at the Manning Market said that the increase in vegetable prices brings more profits to him and other wholesale dealers, though it is a burden to consumers.

"We increase prices based on supply and demand. If there are more vegetables, we have to sell at a lesser price. On the other hand, if the supply is reduced, we have to increase the price. Fuel price hikes will have an impact on pricing but supply and demand has a greater impact on prices," he said.

Mohamed Hassan who runs his own grocery shop at Maradana says the past two years there had been many price changes. "When we started this shop, a packet of Anchor milk was sold at Rs. 105 but now it costs Rs. 165.

A cake of Sunlight soap was sold at Rs. 15 and now it is Rs. 19. When prices go up, customers complain that we hoard stocks until the price goes up, to sell at the higher price but that's not true. We can't sell items at the old price, once the price is increased. Although, we are not running at a profit, we are somehow surviving on our day to day sales," he said.

Neeta Madurangani, a housewife says that even a one rupee increase in a consumer items makes a big impact. "My family depends on my husband's salary and though the month is not over, the salary is no more. In addition to the needs of my three children, bills are consuming our money. This time, there is an additional increase in the water bill which is very hard on us. Although the Government had increased salaries by Rs. 2,500 the unending expenditures has eaten into it. Saving money in these days is unimaginable," she said.

Meanwhile, the Inter-Ministerial Committee on Food Security, a body created to monitor the cost of living and price hikes, has not been summoned for nearly five months. However, Trade, Commerce and Consumer Affairs Additional Secretary Janaka Sugathadasa said UPFA party leaders meetings has taken its place.

"The former committee was able to bring down the price of rice when the rice price was escalating by importing rice. Now matters relating to the cost of living are discussed with other issues at the UPFA party leaders meetings. Though it is a political meeting, relevant secretaries are invited to discuss related issues," he said.

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