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| Wednesday, 26 May 2004 |
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| If Prima increases price : Flour from India at less than Rs. 22 - Jeyaraj Trade Commerce and Consumer Affairs Minister Jeyaraj Fernandopulle said yesterday that he would be compelled to import wheat flour from India if the Prima Company continues with its monopoly and carries out its decision to increase the Price of a Kg. of flour by Rs. 4.40 The Minister said he would make arrangements to sell a Kg. of flour at a price less than Rs. 22 to the public. Prima says that they were compelled to increase the price of flour to recover a sum of Rs. 482 million owing to it by the previous UNF regime. Minister Fernandopulle said that whatever the agreement reached with Prima he cannot allow the innocent consumers to be exploited in this manner. The price of a Kg. of flour which is Rs. 22 at present will be increased to Rs. 26.40 in accordance with a price hike proposed by Prima. By importing wheat flour from India Minister Fernandopulle, was of the view, the monopoly of Prime could be broken while opening the doors for competition that would stabilise flour prices. A decision in this regard will be taken at the next Cabinet meeting tomorrow. According to Deputy Finance Minister Ranjith Siyambalapitiya, Prima had no discretion to increase prices of flour as it fancies.He warned that they would be compelled to seek legal remedies if Prima persists with increased flour prices at its own will. Prima says from the time of the previous regime the world market price of flour kept increasing and although it (the last regime) promised a subsidy to keep the local price stable thus far they had not received this subsidy.It says that it had no alternative but to increase flour prices if the Government did not meet the Rs. 482 million owing to the Company by the end of this week. Although in terms of the present world market prices, a kilo of flour should be sold at Rs. 32.50 they had decided to sell at Rs. 26.40 as a reasonable option, a spokesman for Prima said. |
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