Essential food items at 'Co-op City' supermarkets

by L.S.A. Wedaarachchi

The Multipurpose Cooperative Societies (MPCS) will open 'Co-op City' supermarkets islandwide to sell essential food items at concessionary rates.

Three hundred and five million rupees had been allocated through the budget to develop the cooperative sector which has 305 MPCs in the island. All taxes - VAT, income tax and debt tax were exempted from the cooperative sector through the budget.

Secretary, Ministry of Trade and Consumer Affairs Dr. R. M. K. Ratnayaka said that essential food items such as rice, sugar, flour, onions and dhal will be sold at the cooperative super markets 10 percent lower than the private sector outlets because of the tax exemption.

"Only 15 MPCs of the 305 have a cash flow with business viability. It is essential to rectify the situation and revive the cooperative sector through experienced government officials and cooperative board members, he said.

The Cooperative Section of the Trade Ministry will be strengthened to handle this task. The Secretary said that the revamping plans of the MPCSs, can be implemented before the end of this year. The Secretary said the supply of essential food items to the MPCSs will be handled by a central authority.

Imported food items will be sold at cooperative supermarkets.

The 'Co-op City' cooperative supermarkets are functioning in Negombo, Kaduwela, Katana, Minuwangoda, Mawanella, Nuwara Eliya and Bakamoona.

The People's Bank met MPCS representatives at the Bank auditorium last Wednesday to explore the possibility of assisting MPCSs, to implement the budget proposals. A lower interest rate of 8 per cent and a loan package for development activities were introduced to the MPCS representatives by the bank at the meeting.

The People's Bank called upon them to submit their proposals within a week.