Food merchants glum as Avurudu nears
Business has gone stagnant as the New Year approaches, wholesale traders say, with goods not shifting from shops and sales lower than at this time last year.
Porters and transport providers who are normally busy in the run- up to Avurudu are sitting idle outside wholesale shops at Pettah with goods not moving fast enough.
Y.R. Rajendra, the manager of a wholesale, rice and grain shop, said people have less money and are buying less even though prices of some grains have decreased.
He cannot stock his shelves with newly- harvested rice supplied by farmers as the old stocks have not shifted.
“The lorries are here but they have no transport business because retailers are not buying large amounts of rice, spices or vegetables from us,” he said.
He said wholesalers had bought foreign rice when the government had notified them of a drought and looming rice shortage but since there was local rice available people chose not to buy the imported products, leaving the shops with unwanted stock.
Another manager of a wholesale shop selling foreign and local rice, Jagath Wickramaratna, had a different story: he was unable to sell local rice at Rs. 100- 120 a kilo but was selling foreign rice to retailers as that was what the public could afford.
Mr. Wickramaratna said he had to pay small- scale millers more for local rice or face doubled prices from large- scale millers.
Porter Shantha Kumara said that most of his fellow- porters are just sitting in front of shops without work because retailers are not calling on their services to load and unload goods.
“Last year, we were constantly loading and unloading goods from lorries – we could not even catch up with each other or have asip of water, but today all of us are waiting around to unload goods or fill up empty trucks with goods,” he said.
A broker who coordinates rice and vegetable transportation from the south, Suraweera Gamage Sunil, said reduced buying in shops had led to reduced hiring of transport vehicles.
A truck that usually carries 800 bags of rice from Galle to the Colombo markets had only arrived with 100 sacks due to low demand. If a full load was sent Another seller, Mohammed Akram, said he used to enjoy much better business at preAvurudu time. His prices were way down, with carrots, for example, selling for Rs. 120 compared to Rs. 550 at this time last year.
The government is working hard to keep costs of foodstuffs down at its outlets to prevent New Year price breakouts.
An official working at Lanka Sathosa said revenue had increased with more people coming to buy rice due to the subsidised prices of rice and milk products.
Last year’s profit for March was Rs. 70,000 but this March it was Rs. 80,000, he said.
“If the prices of milk products drop further we can reach Rs. 100,000 at least,” he said.
Sathosa will continue subsidies on food prices to help people celebrate the New Year, Lanka Sathosa CEO, Dr. S. H. M. Faraz said at a press conference.
He said subsidies were being applied to imported rice, dhal and potatoes while Sathosa was also buying stocks from local farmers.
“We are hoping to reduce the price of rice and sugar next week,” Mr. Faraz said.
Indika Ranatunge, a director at the Ministry of Industry and Commerce, said the gas companies and imported milk product companies were calling for price increases due to increases in foreign markets and the depreciation of the Sri Lankan rupee but that the government would not allow any price hikes until the end of the festive season.
Ms. Ranatunge said the gas companies have requested an increase of Rs. 275 per gas-filled cylinder while the milk powder companies want an increase of Rs. 100 per kilo.
A broker who coordinates rice and vegetable transportation from the south, Suraweera Gamage Sunil, said reduced buying in shops had led to reduced hiring of transport vehicles.