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.

Discover Kapruka, the leading online shopping platform in Sri Lanka, where you can conveniently send Gifts and Flowers to your loved ones for any event including Valentine ’s Day. Explore a wide range of popular Shopping Categories on Kapruka, including Toys, Groceries, Electronics, Birthday Cakes, Fruits, Chocolates, Flower Bouquets, Clothing, Watches, Lingerie, Gift Sets and Jewellery. Also if you’re interested in selling with Kapruka, Partner Central by Kapruka is the best solution to start with. Moreover, through Kapruka Global Shop, you can also enjoy the convenience of purchasing products from renowned platforms like Amazon and eBay and have them delivered to Sri Lanka.