Prima to face legal action over wheat flour price

by Lalin Fernandopulle

Minister of Trade Marketing Development, Co-operatives and Consumer Services, Bandula Gunawardana said that he will be resorting to legal action against the Prima Ceylon Ltd. for not seeking approval from the Consumer Affairs Authority (CAA) before increasing the price of wheat flour.

He said wheat flour is categorised as an essential item by the CAA and that the company has to get prior approval before increasing the price.

The Ministry has decided to take action against Prima Ceylon Ltd. for violating Act No 18 of the CAA which states that no manufacturer or seller could increase prices of essential items listed in the Act without approval.

The price of wheat flour has been increasing frequently and within a short period it has increased from Rs. 38 to 43 per kilogram affecting the prices of all wheat flour based items.

Consumers who have to grapple with the rising cost-of-living cannot afford a loaf of bread which is now sold at Rs.25.

There had been extensive discussions with the officials of Prima over the price of wheat flour and the need to stabilise it for the benefit of consumers, the Minister said.

The company has failed so far to come to an agreement with the Ministry of Trade in its price stabilising mechanism to ease the burden of consumers and safeguard traders. When contacted, officials of Prima Ceylon Ltd. declined to comment.

Gunawardana said that at a meeting held with President Mahinda Rajapaksa and other senior Government officials on Thursday a decision was taken to keep prices of essential commodities to the minimum and stable to curb the rising cost-of-living.

The Ministry of Trade decided to stabilise prices of 10 essential items from March 1 for three months. The 10 items are dhal, sugar, red onions, Bombay onions, dry fish, canned fish, gram, green gram, chillies and Maldive fish.

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