Fresh moves by Govt. to ease food scarcity, prices

• Finance Minister cuts special commodity levy on imported rice from Rs. 65 to 25 cents
• Revokes 7 previous gazettes to remove MRP on main essential items
• Trade Minister says removal of special commodity tax aims to provide rice below Rs. 100

Finance Minister Basil Rajapaksa

The Government yesterday announced a host of measures to yet again ease food supply constraints and keep prices stable amidst public outcry.

Finance Minister Basil Rajapaksa reduced the special commodity levy of Rs. 65 per kg of imported rice to 25 cents. The move is for six months from 2 November and will ensure sufficient stocks ahead of the festive season.

The order was made under Section 2 of the Special Commodity Levy Act No. 48 of 2007.

Trade Minister Bandula Gunawardena said imported rice would be distributed through the mediation of Lanka Sathosa and the co-operative movement across the country to be sold below Rs. 100 per kg.

“The rice can be sold below Rs. 100 without keeping a huge margin. The majority of the rice importing licenses are held by the State Trading Corporation (STC) and importers have agreed,” he added.

Gunawardena said those who violate the agreement and sell at higher prices would lose their import licence.In addition, the Government cancelled seven gazette notifications to remove the Maximum Retail Price (MRP) on 14 essential commodities on Wednesday, paving the way for a hike.

The MRP of dhal, sugar, sprats, green gram, potatoes, big onions, canned fish, chickpeas, wheat flour, full cream milk powder, dried fish, coconut, chicken and maize have been removed through a new gazette issued by the Consumer Affairs Authority (CAA) on Wednesday.

In an earlier notification issued in 2017, the price of Mysore dhal was Rs. 159 per kg, imported dried sprats Rs. 490 per kg (Thailand), imported dried sprats Rs. 405 per kg (Dubai), green gram Rs. 205 per kg and imported potatoes Rs. 115 per kg

The MRP announced on 2 September for white sugar Rs. 122 per kg and brown sugar Rs. 125 per kg was also removed by the Gazette.

In addition, MRP on chickpea at Rs. 260 per kg, dried chilies at Rs. 385 per kg, dried fish (katta) at Rs. 1,100 per kg and dried fish (salaya) at Rs. 425 per kg was removed.

The new gazette notification has also removed the retail cap prices of maize (for any purpose) at Rs. 55, whole broiler chicken (with skin) at Rs. 430 and whole broiler chicken (without skin) at Rs. 500.