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Sri Lanka turns to India for wheat amid price battle at home
Colombo, May 27: Sri Lanka today announced plans to import wheat flour from India following a battle with a Singaporean company which holds a virtual monopoly on flour milling in the island.
Colombo, May 27: Sri Lanka today announced plans to import wheat flour from India following a battle with a Singaporean company which holds a virtual monopoly on flour milling in the island.
The government was prepared to open talks with India on importing cheaper wheat flour on credit terms as the Singaporean firm 'Prima Ceylon Limited' remained locked in a dispute, Trade Minister Jeyaraj Fernandopulle said.
The government today used tough consumer affairs laws to prevent Prima from increasing domestic retail prices of wheat with the approval of the authorities here.
Prima had asked for 10.2 million dollars to offset losses as a result of holding down prices in line with a request by the government, Fernandopulle said. There was no immediate comment from prima, but press reports here had said that the company was ready to increase flour prices unless the government paid the promised subsidy. "We can't allow a price increase and that is why I have gazetted wheat flour as an essential commodity so that Prima can't increase the price without approval from the Consumer Affairs authority," the Minister said.
The retail price of wheat flour ranges from Rs 22 to 27, but Prima had warned last week that prices could climb unless the government paid up the promised subsidy.
Bureau Report
The government today used tough consumer affairs laws to prevent Prima from increasing domestic retail prices of wheat with the approval of the authorities here.
Prima had asked for 10.2 million dollars to offset losses as a result of holding down prices in line with a request by the government, Fernandopulle said. There was no immediate comment from prima, but press reports here had said that the company was ready to increase flour prices unless the government paid the promised subsidy. "We can't allow a price increase and that is why I have gazetted wheat flour as an essential commodity so that Prima can't increase the price without approval from the Consumer Affairs authority," the Minister said.
The retail price of wheat flour ranges from Rs 22 to 27, but Prima had warned last week that prices could climb unless the government paid up the promised subsidy.
Bureau Report