CAA takes Prima, Serendib to Court over flour price hike

Tuesday, 20 November 2012 00:31 - - {{hitsCtrl.values.hits}}

The Consumer Affairs Authority (CAA)has filed cases against the two major flour millers, the Prima Group and Serendib Co., in the Colombo High Court for violating the Consumer Protection Act.

The companies are accused of increasing the price of wheat flour unilaterally without prior approval of the CAA.

According to the Consumer Protection Act, approval of the CAA is needed to increase the price of wheat flour, which is an essential food commodity.

Prima and Serendib wheat flour companies increased the prices of their products on 26 October. Prima increased the price of a kilo of wheat flour by Rs. 6 per kilo, while Serendib increased the price by Rs. 4. Following the hike, bakery owners raised the price of a 450 grams loaf of bread by Rs. 2.

On a previous occasion, the Government broke the monopoly of the Prima Company and encouraged the launch of Serendib Company in a similar circumstance when Prima increased price of wheat flour without the approval of the CAA.