Some companies, such as Prima and Serendib, which finance some political campaigns and parties, are allowed to enjoy a monopolistic situation in the wheat flour market, allowing them to accumulate exorbitant profits, said Mr Anura Kumara Dissanayaka in parliament. Sri Lanka Latest News
He said this while referring to the government a question raised under Standing Order 27/2 about the problematic situation faced by the bakery industry and the general consumer due to the move to give two companies a wheat flour monopoly in the market.
I would like to draw the attention of this House to the problematic situation faced by the bakery industry and consumers in general due to the move to give two companies a wheat flour monopoly in the market.
Today, there are about six thousand bakeries operating all over the island and about 05 lakh people earn their livelihood through the bakery industry. Apart from rice, which is the staple food, wheat flour is the main ingredient in many types of food consumed by most people including the plantation people. Thus, the price of wheat flour has a direct impact on food expenses, which are the largest part of the living expenses of a large number of consumers.
In this situation, the government has banned the import of wheat flour without import licenses through the extraordinary gazette issued on 14.06.2023 and the letter of the controller of import on 16.06.2023. Also, no new import licenses have been issued. Accordingly, the task of meeting the domestic demand for wheat flour has been monopolized by two multinational companies that import wheat and produce flour in this country.
The problem is that these companies have taken steps to sell domestically produced wheat flour from imported wheat seeds at a higher price at an unfair profit. They sell 01 kg of wheat flour in the market at a price as high as 210 rupees. Also, they only pay a tax of 03 rupees to the government for 01 kg of wheat grains they import.
Mr Dissanayaka directed some queries expecting a reply form the relevant minister
It is expected that the answers to the following problems that arise in this situation will be placed before the assembly by the concerned minister.
01. When the price of wheat flour in the world market was decreasing, for what reason was the measure taken to stop the import of flour?
02. Is import permit issued for import of wheat flour as declared? What is the procedure for granting those licenses?
03. Do you accept that the wheat flour monopoly was created in the market by stopping the import while the wheat flour price and wheat kernel price were gradually decreasing in the world market and it was unfair to the consumer?
04. Are these issues related to the essential food consumption of the people investigated and necessary interventions are made? What are the measures taken by the government to save the consumer from monopoly?
Anura Dissanayake
Member of Parliament
