Protecting the consumer, Govt's top priority

The Government has taken several steps to reduce the cost-of-living and stabilise the prices of essential commodities. This is most welcome as traders could resort to all business tactics under the sun to burden consumers during the forthcoming festive season.

Protecting local farmers and the country's agro industry has been a top priority of the Government, which has been spending millions of rupees on the fertiliser subsidy.

However, an organised mafia attempted to manipulate the prices of rice artificially several months ago. The Government did not import rice to protect the local paddy farmer, but was constrained to relax restrictions for a limited period of time until the price of rice in the local market stabilised. Many rice mill owners who sent their buffer stocks of paddy underground to create an artificial scarcity to jack up prices of rice, were compelled to release the stocks.

In the same vein, the Trade, Consumer Affairs and Cooperatives Ministry last week said that it would be left with no other option but to import essential food commodities, if traders continue to charge exorbitant prices. Trade, Consumer Affairs and Cooperatives Minister Johnston Fernando said that as a result of the traders' mafia, the poor consumers had to bear the brunt and pay more for essential commodities.

As the Minister said, the Government will get directly involved to reduce the prices of essential commodities, if the traders' mafia continues to exploit the artificially created situation.

With the festive season round the corner, the Government is taking every possible step to protect consumers from unscrupulous traders who try to make huge profits, casting a heavy burden on helpless consumers. Over 300 metric tons of paddy, purchased and processed by the Paddy Marketing Board, were released to the local market last week in a bid to reduce the prices of rice.

Thanks to the bold step taken by the Government, consumers could now buy a kilogram of Samba at Rs. 63.50, Nadu at Rs 58.50, Red Nadu at Rs. 43.50 and Sudu Kekulu at Rs. 53.50 through Lak Sathosa, Mini Coop cities and Coop outlets all over the country. This would act as a deterrent and compel traders to reduce prices drastically and bring them on par with the real market prices.

Hence, the public should be ever vigilant when purchasing essential commodities and not fall prey to the gimmicks of the traders' mafia. The Trade, Consumer Affairs and Cooperatives Minister has called upon the public to purchase essential commodities from Lak Sathosa, Coop Cities and Mini Coop outlets where the prices of essential items are much lower than those at private outlets. For example, Lak Sathosa sells a kilogram of potatoes at Rs. 84, compared to Rs. 100 by private retailers.

The Government will closely monitor the market trends and endeavour to maintain the prices of essential commodities such as rice, sugar, dhal, dried chillies, potatoes and canned fish at an affordable level. The Ministry also hopes to reduce the prices of a number of other essential commodities in the near future.

The Government is also passing on to consumers the benefit in the drop in fuel prices due to direct imports. There is also a possibility of reducing the price of fuel within the next three months. The price of fuel has been kept stable for over an year, without any increases since November 2009. Petroleum Industries Minister Susil Premajayantha said that the price of fuel could be reduced within the next three months, when the Ministry commences direct oil imports.

Discussions on direct imports have already been held with Iran, Oman and Saudi Arabia in this regard. Sri Lanka could obtain oil at a discounted price with direct imports and the Government would pass on this benefit to consumers.

Apart from reducing the taxes on several essential commodities, the Government, through the 2011 Budget, has reduced the tax on profit of the Ceylon Petroleum Corporation (CPC). The CPC will use this facility and expand its storage facilities. When Sri Lanka makes direct oil imports and reduces the prices of oil within the next few months, it will be a huge boon to all sectors. This would make a direct impact on reducing the cost-of-living.

Apart from the numerous benefits to the masses in the 'People friendly' and development-oriented Budget 2010, the Government has granted a five percent salary increase to all public servants and the Security Forces. This would maintain the present structure of 1:4 in the public service salaries.

Moreover, the cost-of-living allowance granted to all public servants and Security Forces in non-staff categories, will be increased by Rs. 600 monthly and for pensioners by Rs. 250 per month, from next month. As an interim measure to rectify anomalies in the pension structure, there would be an increase of Rs. 750 per month for those who retired prior to 2003 and Rs. 250 for those who retired between 2003 and 2006. More importantly, the Government's budget proposals to increase salaries and the cost-of-living allowance would benefit nearly 450,000 pensioners and 1.3 million public servants.

All these tangible steps have been taken to reduce the impact on the cost-of-living and provide a better tomorrow for the masses. It is indeed no easy task for any Government to embark on development projects and increase the salaries of public servants. For that matter, any Government would find it increasingly difficult to reduce the tax on essential commodities and implement social welfare measures simultaneously.

Thanks to the clear vision envisaged in the Mahinda Chinthana and the Government's management of the economy in a professional manner, Sri Lanka has broken all barriers and debunked book theories. The Government has always exercised extra care of the poor rural masses and would continue to do so.

While enjoying all these benefits, the masses, especially, public servants, must fulfill their duties by the country and the nation at large. The contribution to our motherland should be our topmost priority. This would help Sri Lanka progress on the correct path and march towards economic prosperity.