Food prices remain low

By Gamini Warushamana

The prices of most food items remained low amidst increasing demand during the Sinhala and Hindu New Year festive season, market sources said. Traders said that due to uninterrupted supply and sufficient stocks, the price of rice declined during the festive season. Last week in the Pettah wholesale market, Nadu rice sold at Rs. 55-58, Samba at Rs 65-67 and red parboiled rice at 55-58, proprietor of Laxman Traders in Fourth Cross Street said.

Proprietor of Nadeeka Trading Company in Fourth Cross Street, Pettah said that only dhal prices had increased on the eve of the festive season by Rs. 20 per kg and prices of all other essential food items had dropped.

The price of big onions was at Rs. 48 per kilo and prices have declined with large stocks of imports from India. The wholesale price of potatoes imported from Pakistan remained at Rs. 40-47 per kilo. However, the retail price of local potatoes was over Rs.100 per kilo. The wholesale price of Indian red onions was at Rs. 95 and there were no local supplies. The wholesale price of sugar too has declined from Rs.100 to Rs. 93 with imports from Pakistan and traders said that duty free imports from Pakistan under the free trade agreements between the two countries had slashed market prices.

Meanwhile, vegetable prices at the Manning Market remained low due to excess supply.

Textile and apparel traders said that business was moving at a slow pace and there were not many customers as in other years. Proprietor of Sharp Centre, a wholesale textile shop said that wholesale demand for textiles was extremely low and to overcome the situation they had begun retail sales.

Traders at Fourth Cross Street wholesale market too said that the trade turnover was significantly lower this year compared to previous years. They expressed different views regarding this low demand. Proprietor of A.T. Merchants, Muruganadan adduced that the high cost of living may be the reason.

Some traders said that the trade had now shifted to provincial cities and Colombo suburbs and supermarkets. Some other traders said that cheap products on the pavements was another reason.

However, First Cross Street and Second Cross Street in Pettah were crowded with New Year shoppers.