| Bakery owners warned yesterday the bread price increase will be followed by price increases in other flour-based products. However, they declared their willingness to reduce prices within 24 hours, if the government would take legal action and reduce flour prices.
Bread is, slowly but surely, receding from being affordable with the steady increase in prices, as leading wheat flour suppliers continue to increase the price of flour sans government approval.
On Thursday, the All Island Bakery Owners’ Association increased the price of a 450g loaf of bread by two rupees. As a result a loaf of bread that was sold at Rs. 48 is now Rs. 50 and bread sold at Rs. 50 is now Rs. 52.
The increase came after Prima Ceylon Ld, the main wheat flour supplier raised the price of flour by Rs 4.10 per kg, and Serendib Flour Mills Pvt. Ltd raised its flour prices by Rs. 3 per kg. At present flour is sold at Rs. 88.50 per kg.
According to the All Island Bakery Owners’ Association President N.K. Jayawardena, some 6,000 bakery owners islandwide, were hard hit by the recent fuel price hike and the flour price hike. “Along with bread, prices of sandwich bread, buns, pastries and savouries will also increase proportionately. It severely affects the working class who opt for these food items, due to their busy lives,” he said.
However, he said if the Consumer Affairs Authority (CAA) would take necessary legal action and obtain a court order for a reduction in wheat flour prices, the association would bring down the price of bread within 24 hours.
Bread is a staple food item today and for that reason the government has declared it an essential food item. Those depending on wheat flour products such as rotti, parata, string hoppers, hoppers, kottu and pittu find it as much a part of their staple diet. In fact, people in the plantation sector skip a meal, if the previous meal is wheat flour based.
“People working on estates find wheat flour food such as rotti very filling, and hence are able to skip a meal or two every day. The plantation population, which is about a million strong, is totally dependent on wheat flour,” said Lanka Jathika Estate Workers’ Union General Secretary K. Velayutham.
Mr. Velayutham said that from the present daily wage of Rs. 405, an estate worker spends about Rs. 300 on food for the family. “There is no relief or subsidy provided to estate workers. It is the women who suffer from the hike. Appeals have been made on several occasions but the authorities pay no heed,” he said.
An owner of a food outlet in Kirulapone said, “We increased the price of hoppers, string hoppers, parata and kottu after the fuel price hike. Now with the flour price hike, we are helpless, and unable to increase the price again, therefore, we bear up the losses.”
Following the fuel price hike, prices of all wheat flour food items were increased by Rs. 1 to Rs. 5, while the price of kottu was increased by Rs. 10.
Wheat flour is listed in the gazette as an essential food item. Hence, according to the Consumer Affairs Authority (CAA) Act of 2003, no trader can increase the retail or wholesale price of any essential goods, without prior written approval of the CAA.
Attorney-at-Law and Western Provincial Councillor Shiral Lakthilake said, as Prima Ceylon Ltd. and Serendib Flour Mills Ltd. failed to obtain CAA approval before increasing their prices, the Authority can use its powers under the Act and grant due redress.
“The Authority should not delay in taking action against these companies, as an essential food item is involved. It is clear that these companies are not subject to the country’s law. If the companies fail to comply, the Authority can impose a penalty through the district or magistrate courts without any delay,” he said.
He said that the PL 480 agreement between the Sri Lanka government under President J.R. Jayawardene, and the United States, was replaced with the MoU with Prima Ceylon Ltd., which is in need of reframing, as it has given more powers to the company in supplying wheat flour to the country.
“Previously, there were trade ministers threatening to abolish the MoU when wheat flour prices were increased. But they have allowed the monopoly to continue,” he said.
CAA Chairman Rumy Marzook said that letters have been sent to both companies demanding explanations on the arbitrary increase in the price of wheat flour.
He said legal action will be taken against the companies, but declined to elaborate and provide a timeframe.
“It is not possible to say whether the price of flour will be reduced. Legal action will be subject to the explanation provided by the respective companies,” he said.
When contacted, both Prima Ceylon Ltd and Serendib Flour Mills Pvt. Ltd refused to comment on the issue and provide reasons for the increase in prices. |
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