Action against flour hike: CAA still waiting for AG’s opinion

Wednesday, 11 May 2011 00:00 -     - {{hitsCtrl.values.hits}}

By Shezna Shums

The Consumer Affairs Authority (CAA) is still awaiting a response from the Attorney General’s Department regarding action to be taken following the recent wheat flour price hike.

Chairman - CAA Rumy Marzook said that the AG’s Department is yet to get back to the CAA as they were facing a legal snag which needs further study.

“I have to wait for the AG’s reply before the CAA takes legal action” noted Marzook.

Following the increase in the price of wheat flour, the price of a loaf of bread too was increased by Rs. 2. However, the All Ceylon Bakery Owners’ Association does not see any change in the demand for bread even after the price increase.

Serendib Flour Mills had increased the price of a kilo of flour by Rs. 4.12, while Prima Ceylon Limited has hiked the price of flour by Rs. 4.10.

Both these companies did not receive permission from the CAA before they revised their wheat flour prices.

However, for essential items the CAA has to give permission before the prices are revised. Some of these items are LP gas, milk powder, cement and chicken.

Following this price increase, Sri Lanka also saw the price of imported milk powder go up.

A 400 g packet of imported milk powder was increased by Rs. 20 and a one kilo packet was increased by Rs. 49.