Lessening the burden of the common man:

Consumer item supply given a boost

Irangika RANGE

The formulation of policies and plans in the fields of trade, marketing development, co-operatives and consumers services under the Mahinda Chinthanaya policy framework have strengthened the domestic economy, domestic identity, food security and consumer rights adding new value to national wealth.

Under the leadership of President Mahinda Rajapaksa who has prioritized the promotion of fair trade in the market while securing the interest of local manufactures and consumers, the Government has been able to afford a number of reliefs to consumers despite challenges poised by the global economic downturn for the past four years.

Having realized the own experience and by looking at the global experience, many steps had been put forward for the promotion of co-operatives services and contribution to the development of human recourses in order to create a knowledge based economy.

Trade, marketing development, co-operatives and consumer services Ministry has been more successful in promoting trade while providing reliefs to the public for the past four years than before, in contributing to the Mahinda Chinthanaya policy.

The Ministry was involved in formulating national policies on trade and also in registration of companies, verification of weighing and measuring equipment, establishment of sales outlets, protection of intellectual property and the promotion and development of trade activities.

A new institute named 'State Trading (Co-operative) Wholesale Company Limited' was established to strengthen the state participation in wholesale trade. Special consumer courts were established within the Colombo Judicial zone to facilitate the implementation of regulations on consumer rights with the purpose of effectively protecting consumer rights and ensuring food security.

Some essential consumer items were sold at concessionary prices through Lak Sathosa Sales Outlets and Co-operative stores. In its endeavour, the services rendered by the institutions coming under the purview of the Ministry such as State Trading (Co-operative) Wholesale Company Ltd. STC General Trading Company Ltd. and Building Materials Company were enhanced.

In addition, scholarships were awarded to University and Advanced Level students to promote the higher education. In order to provide more effective service to the people, the Co-operative sector was strengthened, its infrastructure developed and assistance provided to implement several important projects.

Furthermore, action was taken to increase the salary scales of co-operative employees, providing employee education and introducing accounting and auditing standards for co-operative societies with the cooperation of Provincial Co-operative Ministers and Provincial Co-operative Commissioners.

Sri Lanka is a member of World Trade Organization and has also entered into several regional trade agreements such as South Asian Free Trade Zone, Indo-Sri Lanka Free Trade Agreement, Sri Lanka Pakistan Free Trade Agreement and Sri Lanka Maldives Free Trade Agreement.

The Government expects private sector participation to promote export oriented international trade. Accordingly, the Government is engaged in expanding and diversifing industrial and export products, effectively manage physical and human resources and increase employment in rural and urban areas to increase income of the population. In order to encourage investment, tax relief and tax exemptions on the import of machinery and raw materials are provided. These incentives are provided for new investors in the field of industrial sector producing such exports are garment, rubber, leather, shoes, plastic products and also in information and communication technology.

In order to implement these policies, the Ministry has taken action to amend the Consumer Affairs Authority Act giving it more powers act against unfair trading practices with the view to protect traders and producers. To improve and increase efficiency of import and export trading activities, E-Services Lanka Ltd was established and user based effective freight clearance mechanism were initiated.

The aim of the Government is to ensure food security at household level by protecting the consumers from adverse effects of rising prices of essential commodities in local and international markets. Trade Minister Bandula Gunawardene who is a member of the Cabinet sub committee appointed for monitoring the cost of living and food safety in the country.

This committee is chaired by President Mahinda Rajapaksa and decisions taken at the committee are implemented with the coordination of other respective Ministries and Institutes. As per the decision of the committee, major tariff reliefs were granted for the imports of essential food items since 2007, and the Government incurred a loss of revenue around Rs.800-Rs.1000 million per month.

The import of rice from Myanmar and selling rice at concessional price in the local market to reduce the price pressure experienced by the consumers during the first quarter of 2008, was one of the most significant decision of this committee.

Taxes levied on import of essential commodities such as sugar, potato, dhal, red onion, b' onion, green gram, milk powder, sprat, gram, dried chillies and canned fish have been reduced to an acceptable level to stabilize the CoL of the people. Similarly, in order to control the prices of consumer sensitive items, actions were taken to control the prices of rice, milk powder and L.P. Gas using the provisions available in the Consumer Affairs Authority Act. In order to provide relief to the plantation community who were badly affected by the increase of wheat flour prices, subsidy on rice up to a maximum of Rs.100 per family per month was provided to the plantation community living in the districts of Matale, Kandy, Nuwara Eliya, Badulla, Kegalle and Ratnapura.

Fruit and vegetable marketing facilities have been provided through dedicated economic centers. In 2008, with the objective of providing facilities for urban consumers, the Ministry established Welisara Dedicated Economic Center near the Colombo-Negombo highway and constructed a new economic center at Narahenpita and Ratmalana. Apart from that, necessary actions have been made to import essential consumer items like cement to stabilize the local, market prices through the intervention of the State Trading (Co-operative)Wholesale Company Ltd.

Necessary actions have been taken to maintain buffer stock of rice, which is the staple food of the nation in order to ensure the continuous supply of rice in the market and the stability of price levels. In addition, since the responsibility of preparation of South Asia Association for Regional Cooperation (SAARC) Food Security program has been entrusted to the Trade Establishment of SAARC Regional Food Bank. The maximum local market prices of rice has been fixed at Rs.70 per kg of Samba and Rs.65 per kg of Nadu and raw rice and these prices have maintained in the course of this year.

A grant of Rs.1 million was made to each multi purpose co-operative society to purchase equipment for the establishment of at least one Co-operative shop known as Co-op City Super Markets enabling them to provide better services in competitive environment of trade. The progress made by the Co-operative Societies with the establishment of Co-op City Super Market have increased.

The mission of the co-operative sector is to formulate national policy for empowerment of the Co-operative Movement as a sustainable people's enterprise ensuring greater value for members' contribution and to facilitate the implementation of the national policy.

Accordingly, a total of 9915 registered Co-operatives Societies, 9712 primary Co-operative Societies, 50 islandwide Co-operative Societies and 13 national level Co-operative Societies Unions are active at present. During past four years, the Government has provided its maximum support to the enhancement of Co-operative movement.

The establishment of Co-operative Societies in various fields, provision of credit facilities and financial assistance for crop cultivation through Co-operative rural banks and implementation of Government projects using financial assistance from Co-operative movements were successfully carried out activities.

Some of the main responsibilities under the program of revitalization and resettlement of the Eastern Province was entrusted to the Ministry. In discharging these responsibilities, nine Coop City Super Markets were opened in the Eastern Province to distribute essential consumer items.

Financial assistance was provided to a maximum of Rs.250,000 mainly for setting up Mini Coop City islandwide. Meanwhile, the training programs were carried out to promote skills and attitudes of managers and staff of Coop City Super Markets in all provinces.

The allocation received under 'Gama Neguma' project was utilized to strengthen various fileds of co-operatives such as milk, fisheries, textile and tourist resting.

The necessary actions were taken to provide four to five freezer trucks to milk produces; Co-operative societies to transport fresh liquid milk and other milk products from long distance place to the markets.

The Information Technology system has been developed to collect information at primary level in Co-operative movements. Meanwhile, the co-operative sector as a peoples enterprise had free from taxes.

As a whole, a number of targets have been archieved for past four years by extending the services through institutions including Department of Registrar of Consumers, Department of Measurements Units, Standards and Services, National Intellectual Property of Sri Lanka, Department of Co-operative Development, National Institute of Co-operative Development, Co-operative Employees Commission, Department of Food Commissioners, Consumer Affairs Authority, STC General Trading Company Limited, Co-operative Wholesale Establishment, Lanka Sathosa Limited, Building Material Corporation, The State Trading (Co-operative ) Wholesale Company Limited, Dedicated Economic Centers, The Institute of Chartered Accountants of Sri Lanka and the Mahapola Trust Fund which come under the purview of the Ministry.