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Consumers hit hard in the stomach

Putting together a simple and inexpensive rice-and-curry meal these days has become a huge strain on the family budget. Damith Wickremasekara talks to consumers and retailers

Consumers are astounded by the prices they are paying these days for vegetables, with some grocery items almost double the price they were a month back.

Adverse weather conditions, accompanied by floods, and the re-imposition of an import tax on consumer items are the main reasons for the high prices. Traders warn that prices could go up even further.

Consumers are shocked at vegetable prices that are almost double what they were a month ago. Pix by Athula Devapriya

Carrots have gone up from Rs. 140 a kilogram a month ago to Rs. 240; capsicum chillies are up from Rs 160 a kilo to Rs. 320, and beetroot from Rs. 120 a kilo to Rs. 200, a Sunday Times survey revealed.
Similarly, leeks are up from Rs. 100 to Rs. 160; tomatoes from Rs. 100 to Rs. 200; cabbage from Rs. 60 to Rs. 100; green beans from Rs.100 to Rs. 140; green chillies from Rs. 200 to Rs 400; and drumsticks (murunga) from Rs. 160 to Rs. 320.

Reacting to the prices, consumers say they are compelled to buy less, while traders admit that consumer purchasing power is on the decline. Maradana resident N. Seetha told the Sunday Times that vegetables are almost beyond the reach of medium to low income families.

“It would be good if the government stepped in and took stock of the situation and did something,” she said. K. C. Mohammed, who runs a wayside eatery in Maradana, said customers were buying a lot less than they normally would.

“Customers who ordered 10 string hoppers, a plain tea and a wadai are now skipping the wadai to cut costs,” he said. “Regulars who came here daily for lunch tell me it’s a lot cheaper to bring lunch from home.”

A restaurant lunch comprising fish, meat or chicken accompanied by vegetables is almost beyond the budget of the average office worker, who is either bringing lunch cooked at home or skipping meals.
N. B. Balendran owns a retail shop in Maradana. He told the Sunday Times that the volume of purchases from his shop has dropped dramatically in recent weeks.

“People ask why we have raised our prices, but we have to because the wholesale traders have jacked up their prices. We have no choice in the matter,” he said. “Sales have dropped considerably in recent weeks. A bag of rice takes much longer to finish these days.”

Meanwhile, the re-imposed import tax is reflected in the cost of tinned products and other food items.
Mr. Balendran said a tin of salmon has gone up from Rs. 195 from Rs. 160, and a kilo of sprats from Rs. 290 to Rs. 350.

Imported potatoes have gone up from Rs. 100 to Rs 160, and Bombay onions from Rs. 100 to Rs. 160, while locally grown potatoes have gone up from Rs. 70 to Rs. 110 per kilo.

Fines of up to Rs. 2 million in crackdown on outlets that hide prices

N. B. Balendran, Colombo

The Consumer Affairs Authority is cracking down on retail outlets that do not display prices for consumer items, and warns that the raids will continue. In the past two weeks, the authority has raided up to 100 outlets found to be withholding price tags.

“We believe that steady raids will help raise consumer awareness of price differences,” Consumer Affairs Authority chairman Rumy Marzook told the Sunday Times. Under the Consumer Protection Act, all retail outlets, from supermarkets to economic centres and boutiques, are obliged to display prices.
Mr. Marzook said the ongoing crackdown would help establish a uniform pricing system and protect the public from exploitation.

In the past six months, the Consumer Affairs Authority had collected up Rs. 2 million in fines imposed on traders who had failed to display prices. This week, Co-operative and Internal Trade Minister Johnston Fernando instructed the Consumer Affairs Authority to step raids and keep up the pressure on traders who flout the price display order.

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