New procurement body to ease price burden
Irangika Range
The Government has decided to establish the State Trading Wholesale
Company Ltd to import essential commodities directly from the
international market and distribute them through the Co-operatives
network across the country.
Trade, Marketing Development, Co-operative Service and Consumer
Affairs Bandula Gunawardana told the media yesterday that the new
Chairman and the Board of Directors of this State body will be appointed
in this week.
But If the majority including the Opposition says this agreement is
useless and It has done nothing for the reduction of prices of essential
commodities, then there is no point of sustaining it further”.
The Government is in the process of formulating a new system by
strengthening the Co-operatives and Sathosa branches to provide maximum
reliefs to consumers.
The President has also emphasised the need of reviving the
co-operative societies as they have a special place in the hearts of the
ordinary masses for its role in providing commodities at fair prices to
the consumers.
Measures are already under way to streamline the distribution of
essential items with the help of State cooperatives and the private
sector in order to provide essential items without undue delay to the
consumers.
He said that the Government will directly provide funds to promote
the Co-operatives sector and for its modernisation. It has planned to
set up 306 Co-op Cities with immediate effect including liberated areas
of North and East.
He said that a bank guarantee amounting to US$ 10 million has been
obtained to form this new State establishment.”In order to strengthen
the islandwide co-operative system, we will allocate Rs.1 million to
each co-operative society to restructure and develop them as an urgent
priority.
“The Economic Affairs Committee chaired by President Mahinda
Rajapaksa will meet today to decide on the varieties of essential items
to be imported through the State company.
“Though the Government has been incurring losses amounting Rs.9
billion by removing taxes, we have stabilising the prices of 10
essential commodities including dhall, sugar, sprats, big onion, red
onion, gram, green gram, broiler chicken, potatoes and dried chilies for
the last 10 months.
The Government has also removed five levies including VAT, PAL(Ports
and Aviation Levy), SRL (Social Responsibilities Levy) Customs Surcharge
and Cess Levy on 10 essential commodities by passing the Special
Commodity Levy Bill in Parliament last year.
“It is questionable why the Opposition voted against the Bill,”the
Minister said. This indicates their opposition to providing relief to
the people.
“The Price Stability Agreement has been cancelled from December 25.
It was in force for the last 10 months. New plans are under way to
formulate a new system on the reduction of the prices of essential
commodities.
The Minister said that the Government has not imposed any new taxes
on essential commodities, but prices have gone up at present due to
cancellation of the Price Stability Agreement. |