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Two flour importing companies refuse to reduce prices: Minister
The two companies that import wheat flour to Sri Lanka refused to reduce the prices of flour despite a request to do so, Trade Minister Nalin Fernando said today.
The Minister told Parliament that the two companies have become strong as they enjoy a monopoly of the market and pointed out that competition should be created in the market to decide upon competitive pricing for flour.
"At least 30 percent of flour imports should be given to other importers while 70 percent should be given to the two main companies to maintain a competitive price.
Before the import of flour was banned, we managed to import and provide a kilo of flour at Rs. 165 at a time flour prices had gone upto Rs. 430. However, the Finance Ministry banned the import of flour and introduced a license system. Issuing the license should be done by the Finance Ministry," he said.
The Minister said this in response to a question by MP Dayasiri Jayasekara, who said two companies engaged in flour imports have been allowed to earn an undue profit by giving them a monopoly in the market and removing the Rs. 35 tax which is lost to the government.
The Minister said after the two companies refused to reduce prices, he as the subject Minister declared flour as an essential commodity.(Ajith Siriwardana and Yohan Perera)
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