Pettah rice wholesale outlets closed-raids will commence today

Pettah wholesale traders’ sales outlets were closed yesterday, following the government’s imposition of a price ceiling on rice, effective from midnight April 16. However some were shops that had not been reopened after the New Year holidays. Almost all the wholesale outlets on 4th Cross Street, 5th  Cross Street and the Old Moor street were closed. The traders said that they were unable to sell the existing stocks at the controlled prices since mill owners fixed the prices. If the existing stocks were sold at the new controlled prices, they would suffer heavy losses, said some.

The controlled price of a sack of Samba rice of weight 65 kilogrammes is Rs 40.30, whereas its purchase price is Rs 5400. Rice was sold sparingly at some boutiques: At one it was sold at Rs. 85 a kilogramme of Samba, Rs. 70 a kilogramme of Nadu or Red rice and Rs.65 a kilogramme of Red Kekulu. The owner said he was selling at controlled prices while suffering a loss.

Meanwhile the Consumer Affairs Authority said yesterday that raids would be conducted around the country, beginning today, to nab shop-owners who do not comply with the price ceilings and new regulations relating to the sale of locally produced rice. A spokesman for the Authority said that investigating officers attached to the Authority and those attached to the District Secretariats would conduct the raids.
 
The Government’s decision to control the price of rice came in for severe criticism yesterday from the wholesale trade.
President of the Colombo Pettah Old Moor Street Wholesale Traders Association K. Palaniandy said the Government’s decision to impose price controls on rice was arbitrary. He urged the Government to at least grant the traders a grace period of nine days to consult the millers so that the chaotic situation that has been created by the sudden imposition a price control can be sorted out.
"As a result of the ad-hoc decision by the Government the Laksathosa outlets which had purchased stocks at much higher prices were compelled to toe the Government’s line. People stormed these outlets yesterday demanding rice at the controlled prices. Laksathosa is sure to run out of stocks in two days with mounting losses to the Government," he said.
"We are shocked at the way the Government went about imposing a price control without a dialogue with any of the Millers or Traders," Palaniandy said.
"If the government was sincere in helping the poor masses, we would have certainly cooperated but the Government should have consulted us first or the millers at least, then all could have understood the present situation and taken a right decision," said.
He said the traders would have no problems with regard to imported rice, but the local rice had been purchased from the millers at high costs. It was fine for the government in the interest of the poor masses to bear the losses but they, the traders, were businessmen and had to pay their employees, overheads, taxes and Bank loan interest. He asked who would bear the responsibility for their losses.
"We may be compelled to go out of business, Palaniandy said.
"The Government does not have money to import rice and at present private traders do not have any stocks in hand. This would not create a problem even if rice is imported, the problem is with the local rice," he said.
Palaniandy said if the government believes that it could carry out the task of retailing rice at cheaper prices, they were willing to let it do so and put up shutters for want of an alternative.