The Prime Minister’s call will exacerbate Horizontal Inequality in Sri Lanka

14 December 2011 08:20 pm - 1 - {{hitsCtrl.values.hits}}

A A A

The Household Income and Expenditure Survey (HIES) for 2006 found that an average Tamil family in the estate sector consumed 17.4 Kg of wheat flour per month when the cost per Kg was less than Rs 40. At the time the national monthly average was 2.4 Kg per household. Even though price of wheat flour more than doubled since then to close to Rs 85 a Kg currently (the increase was much higher relative to rice), the HIES for the year 2010 found that estate Tamil households consumption fell only marginally to 15.4 Kg per month indicating how price inelastic these household are to wheat flour. The 2010 data, which covers the entire island, also show that the household wheat flour consumption in the Jaffna district was 19.3 Kg per month while in Vavuniya it was 18.1 Kg per month in contrast to Hambantota at 0.4 Kg per month and Matara at 0.8 Kg per month.
Therefore, someone must explain to the Prime Minister that given the preference for wheat flour in their daily meal even at much higher prices, not only Tamils living on the estates but in the North as well continue to purchase significant amounts of wheat flour. This is because this segment of our population is used to, and simply enjoy, consuming rotti and other food prepared using wheat flour.
By banning the import of wheat flour, or even increasing the taxes on wheat flour to very high levels, would exacerbate what in economics we call ‘Horizontal Inequalities’ or policies that impact only particular segments of society; in this case, ethnic. Simply put, the Prime Minister must be briefed that such half-baked policies will have significant negative impacts on the Tamil people of this country just when policies must be designed to reduce such inequalities.

Order Gifts and Flowers to Sri Lanka. See Kapruka's top selling online shopping categories such as Toys, Grocery, Kids Toys, Birthday Cakes, Fruits, Chocolates, Clothing and Electronics. Also see Kapruka's unique online services such as Money Remittence,Astrology, Courier/Delivery, Medicine Delivery and over 700 top brands. Also get products from Amazon & Ebay via Kapruka Gloabal Shop into Sri Lanka

Comments - 1

willows Thursday, 15 December 2011 06:46 AM

no point in explaining to these ??????

Add comment
Comments will be edited (grammar, spelling and slang) and authorized at the discretion of Daily Mirror online. The website also has the right not to publish selected comments.

The Prime Minister’s call will exacerbate Horizontal Inequality in Sri Lanka

Comments - 1

Add comment

RECOMMENDED

UDA owned land in Thalawathugoda; UDA Minister Prasanna Ranatunga under the spotlight for forceful occupation of reserved land

Loss-making SMIB faces political pressure in recovering loans

Baltimore Bridge Collapse: MV Dali, SL authorities anchored in mystery?

Has Sri Lanka become a potential hub for the illegal wildlife trade?

Spotlight on Moragahakanda Development Project Moragolla villagers lose livelihoods and down to one meal a day

Ambitious Sri Lankan jobseekers ‘trafficked into Ukraine war zones’

Western purple-faced langurs see blue!

Most Viewed in News

23 year old youth ends up having his testicles removed

Confusion remains if April 15 is a bank holiday

Complaint lodged over Piumi Hansamali's possession of Gota’s Range Rover

New Visa procedure implemented

Street food vendor arrested for verbally harassing foreigner

SL on alert on possible genocide allegations by Canada

MIRROR CRICKET

How does CSK get best out of Pathirana?

Mendis, Mathews move up in ICC Test Rankings

Chamodi, Dewmi spins Sri Lanka U19 Women to big win

Amir, Wasim return to Pakistan national team

TODAY'S HEADLINES

100 Police personnel trained to target criminals operating on motorbikes

Catholic Church receives full report

Complaint lodged over Piumi Hansamali’s possession of Gota’s Range Rover

We are struggling with severe shortage of staff – Excise Chief

Mendis, Mathews move up in ICC Test Rankings

Security raised for Champions League ties after threat

SLA target four events at Paris Olympic Games

Chamodi, Dewmi spins Sri Lanka U19 Women to big win