Govt breaks private sector monopoly

by L.S.A. Wedaarachchi

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The private sector monopoly and cartel of the essential commodity market which is the main reason for higher prices of essential items has been successfully broken by the government. This will bring down the essential food item prices in the coming weeks said Trade Marketing Development Cooperative and Consumer Services Minister Bandula Gunawardena.

The establishment of the State Trading Wholesale Company Ltd, 'Lak Sathosa' and Co-op City super shops, the islandwide government Marketing network were able to break the private sector monopoly and cartel of essential commodity market, he said.

One hundred Laksathosa supermarkets and 300 "Co-op City" super shops which are mainly for essential food item sales will be opened islandwide before the new year, he said.

The government's economic policy committee has decided to reduce all essential food item prices to provide relief to the low income groups and the middle class. "Laksathosa" and "Co-op City" prices of all the items including rice, milkpowder, potatoes, onions, dhal, gram, salt, flour, canned fish, fish ball and dried fish are lower than the private sector supermarket.

The unlimited profit margins of the private sector supermarkets had been brought to "breakeven" profit margins at Laksathosa and Co-op City super shops. The 400 gram Australian milk powder packet was introduced by "Laksathosa" at Rs. 255 which is Rs. 15 lower than other brands. The prices of other food items are also lower than the private sector supermarket prices, he said.

Those who patronise Laksathosa and Co-op City super shops will benefit by the reduced prices, he said. The market policy of the previous governments had created the present situation. The gas and flour prices today are ideal examples.

The price increases on gas and flour aiming at unlimited profit margins cannot be permitted by a people's government, he said.