Raids to check market malpractices

By Gamini Warushamana

The Ministry of Cooperatives and Internal Trade sources assured that a sufficient supply of all food commodities will be available during the festive season. Officials said that the ministry continuously carries out raids to reduce frauds and market malpractices.

However, market sources said that prices of many commodities have increased due to several reasons. Taxes imposed by the budget caused price increases of many commodities.

Prices of big onions and potatoes remained low at the Pettah wholesale market after the removal of the tax of Rs. 25 per kg. The tax imposed on several commodities are reflected in the wholesale prices. Traders said that sugar price has increased by Rs. 3, spice prices have increased between Re.1-Rs.5. The major impact is on dry fish prices.In the budget, the tax on dry fish increased from Rs. 65 to Rs.102, sprats from Rs.10 to Rs. 26 and Maldive fish from Rs. 250 to Rs. 302, traders said.

Vegetable prices remain relatively high in the Colombo markets and traders said that they expect it to increase further with seasonal demand. However, suppliers in Nuwara Eliya and Dambulla said that prices will not increase sharply as there will be adequate supplies.The price of rice too shows an increasing trend despite price control.

Wholesalers and retailers said that they cannot sell rice at the controlled price as the millers supply at a higher price and the margin is small that cannot cover cost.

The All Island Poultry Association (AIPA) said that there is an oversupply of chicken in the market and the price will come down during the festive season.

Large-scale poultry producers have oversupplied day-old chicks in the recent past and as a result there is a huge supply from small-scale farmers.

“According to our estimates there are over 20,000 tonnes of chicken in the cold stores of large-scale suppliers. On the other hand there is a decline in demand as a result of economic hardship,” said the AIPA Chairman Dr. D.D. Wanasinghe.

However, the poultry companies have called for an increase in chicken prices by Rs. 80 per kg claiming that the cost production is high.

However, a discount of Rs. 90 per kg is offered at supermarkets, Wanasinghe said.

The wholesale price of eggs was around Rs.12.50-13.59 while the farm gate price was Rs. 11.50, a relatively lower price compared to prices in previous years. D. Mayadunne of the Egg Club, a farmer association, said that price will not increase further as there is a huge supply.