More burdens were heaped on the public this week with the price of bread, gas, milkfood increasing and more hikes to follow in the ensuing weeks.
On February 12 the government announced a fuel price hike, with the price of Lanka Petrol 95-Octane increasing from Rs. 155 to Rs. 167 a litre, Lanka Petrol 90-Octane from Rs. 137 to Rs. 149 and Lanka Auto Diesel from Rs. 84 to Rs. 115.
Two days after the fuel price hike the minimum bus fare was increased to Rs 9, and other charges increased by 20 per cent.
Hard on the heels of that was the shock increase in electricity surcharges on February 16. The Public Utility Commission approved a maximum of a 40 percent fuel surcharge to the electricity bill as a temporary measure to overcome additional costs incurred by the Ceylon Electricity Board (CEB) as a result of the fuel price hike.
A surcharge of 25 percent was made for the first 30units, 35 percent from 31 to 60 units and 40 percent for over 60 units. Industries and hotels had to pay a 15 percent surcharge and a 25percent surcharge was levied for government offices, universities and vocational training institutes.
The price of wheat flour was increased by Rs. 8.50 from April 27. Accordingly, the price of a kilogram of wheat flour was increased to Rs. 97.50. This saw the price of bread going up by three rupees with effect from last Sunday, with a loaf of bread now sold at Rs.58. Many customers have complained that although the price of bread has increased the quality and weight had decreased. (See related story)
On Friday the prices of milk powder, gas and cement also shot up. The price of a 12.5 kg cylinder was increased by Rs. 350, while a packet of a one kilogram and a packet of 400g of imported milk powder were increased by Rs. 61 and Rs. 163 respectively. A bag of cement went up by Rs. 70.
A cross section of the public expressed their views about the recent and almost daily announcement of the prices of commodities being jacked up. Prakash Perera, a private sector worker from Dehiwala said it was a violation of human rights to increase the price of milk powder to promote the local production of fresh milk. “It is the right of the consumer to decide which milk he/she wants to consume. Unlike government sector workers, private sector workers are paid less and have to work hard, so increasing the price of milk powder is a major impact on the people. Earlier in private sector offices the employees were given milk tea thrice a day now they get only plain tea,” he complained.
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| The price of bread goes up but quality and weight appear to be coming down. Pix by Indika Handuwala |
“These days offering milk tea is considered a luxury. Why was 30,000 litres of milk wasted if the government had a plan to promote fresh milk? Increasing the price of flour and gas is going to hit us badly. People will either die of hunger or turn into thieves,” he said, adding that the increase of the price of goods will be a never ending process. It is time the government stopped giving lame excuses and did something about this cost of living.
Udeni Fernando, a mother of three and a fruit seller from Maradana said, the soaring cost of living was a big blow to her. “We are spending more on food than we earn,” she said.
M. Noorool who works at the immigration department and a mother said that cost of living has become the most talked about topic in offices.
“We are government workers and we find it hard to cope with the continuing hike in prices.
“We use one gas cylinder a month and at least four packets of milk. Now we won’t be able to afford all that,” she complained.
Janaki Upendra Thennakoon, a nurse and a mother of two said the increase in prices especially in bread will affect their daily routine. “Since we come early to work we eat bread daily, but now we will have to turn to rice and I will have to get up at the break of dawn to cook some rice and curry,” she said.
Kithsiri Perera, who works at a fruit stall, from Borella and a father of two said that he gets only Rs. 600 a day and that has to suffice to feed his family. “We buy a 100g packet of milk, but now we can’t even afford that,” he said.
Rani Chandra, a mother of two from Moneragala said it was a joke to see what the government was doing for the benefit of the country. It is supposed to work for the good of the people but what are they doing? We are facing so many hardships these days. Only my husband works in our house. From what he earns we have to pay the house rent and buy provisions. We can’t even have a decent meal in this country now,” she charged.
H. Jauffer a three-wheeler driver and a father of four from Dematagoda said life was becoming really hard for him with economic issues even affecting a peaceful family life. “The government justifies the increase in the price of wheat flour to promote the consumption of rice. But we need gas or some sort of fuel to cook rice and that is unaffordable now,” he said.
R. Thiyagaraja, a gram seller and father of four from Kandy said his business has been badly hit by the hike in fuel prices. “Wholesale sellers have increased the price of kadala, from Rs.250 to Rs.320. but I still sell a cone of kadala for Rs.10.If I increase the price, people will stop buying,” he lamented.
High price for our daily bread
The increase of bread prices twice this year resulting in a loaf now selling at Rs. 58 has made this commodity almost a luxury commodity to the ordinary man.
Last weeks’ wheat flour price increase saw bakers raising the price of bread by Rs three while an earlier increase saw a hike of Rs five.
Many lower income earners said replacing bread with rice was not practicable as many had got used to bread as their staple diet. They also charged that although the price had increased the quality had dropped.
L. Mahinda a vendor from Hulftsdorp charged that the quality was poor while the weight was less. He said the bread crumbled easily and also turned bad very quickly. “Bakeries are cheating us,” he said adding that there was no point in complaining to local authorities since food inspectors gave little heed to such matters.
Meanwhile a spokesman for Serendib Flour Mills said that the recent wheat flour price increase was a result of the devaluation of the rupee, the increase in fuel prices and the surcharge increases on electricity prices.
All Ceylon Bakery Owner’s Association Nimal Perera,Secretary, said in addition to the increase in wheat flour prices they had to incur high transport costs due to the increase in fuel prices adding that they had to increase the price of a loaf of bread due to all these price hikes.
Viduravi Bakers manager Nalaka Karunasiri, said the demand for bread had dropped by 30 percent after the increase in price. “Last time we had to increase the price of bread by Rs.five due to the fuel price hike and the hike in prices of ingredients such as margarine. The Rs. three increase this time was mainly because of the hike in the price of wheat flour,” he claimed.
He said 550g of dough had to be baked to produce a 450g loaf of bread.
Meanwhile, P.Dassanayake manager of Perera and Sons the well known bakers said the increase in the price of bread will result in a 20 percent drop in sales, but the situation will normalize in about two months he felt.
UNP, JVP slam Govt. for dancing to IMF tune
The UNP and the JVP both blamed the Government for bowing to the dictates of the International Monetary Fund (IMF) resulting in the people being burdened with an increase in prices of essential goods and services.
JVP Propaganda Secretary Vijitha Herath said that Government has entered into an agreement with the IMF and is now facing bankruptcy. “On one hand by allowing the rupee to float its value has depreciated rapidly while on the other we are taking loans but there is no increase in local production,” he said. MP Herath said that recently the Cabinet approved US $ 600 million to pay the interest on the IMF loan but it is the people who have to pay for it with price hikes and interest rate hikes.
He added that before the National New Year, taxes were increased on vehicles, alcohol and cigarettes and on the eve of Vesak, milk powder, gas and cement prices have been increased.
UNP MP Ravi Karunanayaka said the Government has become extremely inefficient in handling the economy which has led to its near collapse.
“The Government is trying to hoodwink the people. Milk prices did not go up due to an increase in world market rates but because the Government allowed the rupee to depreciate,” he said.
He added that by adhering to the dictates of the IMF, the country has reached a point where it cannot go on any further in this manner. |
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