Price Stability Pact extended

Irangika Range

The Government has decided to extend its price stability agreement which will further stabilise the wholesale prices of 10 essential commodities to afford relief to consumers.

Trade, Marketing Development, Co-operative and Consumer Services Minister Bandula Gunawardana told the media yesterday that owing to the price stability agreement between the Government and the Essential Food Commodities Importers and Traders Association, the wholesale prices of 10 essential commodities will be lower than the prices which they agreed in March last year.

According to the agreement, the new wholesale price for one kilo of white sugar will be Rs. 54 while a kilo of Vatana dhal will be Rs. 95.

A kilo of Mysoor dhal will be Rs. 115. canned fish will be Rs. 90. A Kilo of Dried chilies will be Rs. 165 while a kilo of big onion will be Rs. 50.

The wholesale prices will be Rs. 50 for potatoes while a kilo of sprats (Thailand) and (Dubai) will be respectively Rs. 170 and Rs. 150. A kilo of green gram and a kilo of Kadala will be respectively Rs. 112 and Rs. 120.

The Minister said that 10 essential commodities under the above wholesale prices will be available in the market from today. It will sell at the maximum retail prices through 11,000 regional cooperatives, Laksathosa branches, Sathosa branches and coop cities islandwide as a relief measures to customers.

The Government has decided to remove five levies including VAT, PAL (Ports and Aviation Levy), SRL (Social Responsibility Levy), Customs Surcharge and Cess Levy of this 10 essential commodities by imposing a single tax.

The wholesale prices of this 10 essential commodities will be changed monthly according to the behaviour of the market and the wholesale prices will be decided after discussions between the Government and the Association. "We will announce wholesale prices of 10 essential items daily through the media.

He said there is no rice shortage in the market and enough stocks of Ponni Samba are available in stores of the Food Department in Narahenpita. It has priced the kilo of Ponni Samba as a Rs.53.

He said the price stability agreement between the Government and the Association commenced in March 2007 was ended on December 25, 2007 and the result was that prices of 10 essential items have increased largely with the implementation of previous Act.

He said the Government has incurred a loss amounting Rs.15 billion by removing taxes for last 10 months. But we have decided to continue the price stability agreement to provide relief to consumers. The Government has allocated Rs.309 million to set up co-operative societies islandwide and already nine Super Co-op shops have been built in the Eastern Province.

The proposed State Trading Wholesale Company Ltd which to imports essential commodities directly from the international market will commence business on January 15. It will import some essential commodities while the rest will be purchased from the local market following the tender procedure.

We will distribute them through the Co-operatives and Sathosa branches targeting the medium and low income groups as a relief measure for the consumers.

Essential Food Commodities Importers and Traders Association, Media Secretary Hemaka Fernando said the association would not object if the benefits go to the consumers. We are engaged in the wholesale market and the Government has here no objection on the establishment of a proposed State company.