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| Sunday, 6 June 2004 |
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Minister vs Prima battle worsens by Jayantha Sri Nissanka The battle between Minister Jeyaraj Fernandopulle and Prima Flour Company turned worse with the Minister refusing to pay Rs.1,280 million due to the Prima by the Government. The Minister had urged the Prima to show verified accounts to make payment. "Until they submit proper accounts we cannot spend public money as we wish", Trade, Commerce and Consumer Affairs Minister Fernandopulle told the Sunday Observer. The dues had accumulated as the Prima had sold flour Rs. 3.50 less per kilo from the real price of Rs. 25.50 during the first three months of this year on the approval of the then administration of the Treasury. From April to May, the cost was Rs. 29.50 per kilo but the company sold at Rs. 7.50 loss. When asked as to how he could stop the price increase of flour since the world flour price too had increased in the recent past, Minister said that Prima purchased grain from farmers signing forward contracts at a cheaper price. As a result they purchase grain and stock for years. Therefore, the recent price hike in the world market cannot affect them, the Minister claimed. He said the final decision of allowing another company to import flour had not yet being finalised. However, five companies have applied for licences, he added. |
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