The government has issued a stern warning to suppliers of essential goods, emphasizing that they must pass on cost reductions resulting from recent policy changes by next week. However, some producers have stated that it is not feasible to lower prices due to the high cost of raw materials.
Minister of Trade Nalin Fernando warned that failure to comply by the deadline could lead the government to implement controlled pricing on essential goods.
“We do not wish to impose controlled prices, but we will be forced to do so if necessary. I have called a meeting with all trade associations next week to convey this message clearly,” the minister said during a press briefing.
He noted that government economic policies have reduced power tariffs and transportation costs, and therefore, it is the responsibility of traders to pass these benefits on to consumers. He also mentioned that government policies have lowered food inflation to a single digit and predicted further reductions in interest rates.
In response, All Ceylon Bakers Association President N. K. Jayawardene stated that they are prepared to lower bread prices if suppliers of bakery shortening and flour reduce their prices. “We urge the government to take a firm stance with suppliers of flour and bakery shortening to reduce their prices. Currently, we are selling a loaf of bread for Rs 140, but we are willing to lower prices depending on the cost of raw materials,” he said.
Similarly, All Ceylon Egg Producers’ President Sarath Ratnayake highlighted that reductions in power tariffs and transportation costs will not significantly impact egg prices due to the high cost of animal feed. “The price of maize has risen to Rs 190 per kg from Rs 130 a few weeks ago, and the cost of a female chick is Rs 800. Maintaining 1,000 hens costs around Rs 2.8 million, leading us to price eggs around Rs 60. We need a reduction in these costs to lower egg prices,” Ratnayake explained.
Source – dailymirror.lk
