Jacking up flour price:

CAA to sue company

Irangika RANGE

The Consumer Affairs Authority (CAA) has decided to sue the Serendib Company for increasing the price of a kilogram of wheat flour by three rupees without the Authority's approval. CAA Chairman Rumi Marzook said the CAA has informed the company to immediately suspend the price hike.

If the Company does not reduce the price immediately, the CAA will file legal action against the Serendib Company," he further said.

Since wheat flour is an essential item, the companies which provide wheat flour to the local market cannot increase the wheat flour price on their own without the due permission of the CAA.

The companies should make a request from the CAA to increase the wheat flour price. But the Serendib Company had not requested from the CAA for a price increase in line with the rules and regulations of the CAA Act.

Therefore, this is illegal. Marzook said adding that the company should now reverse the decision and seek the Consumer Affairs Authority's approval for a price increase.

If not, the Authority would take legal action against the Company, he said.