Stationery industry reeling under high costs
Students, parents hit hard by skyrocketting prices of exercise books, ballpoint pens Stationery store owners in a dilemma SPC to print around 11 million exercise books and sell them at subsidised prices next year
As the economic crisis continues to rumble, schoolchildren are currently paying the highest ever prices for exercise books and stationery items.
The Government has also drawn attention to the issue by holding a special emergency meeting last week and instructing the State Printing Corporation (SPC) to prepare a programme to provide exercise books to children at the lowest possible cost.
The SPC has already sent the necessary documents to the State Bank of India through the Indian High Commission to import the necessary printing papers via the Indian credit line. It hopes to begin printing exercise books by mid-December.
“We have requested approximately US$ 1.5 million worth of printing papers to supply 11 million exercise books by the end of March next year. Since the new school year will begin in April, parents do not need to rush to buy books for their children at the end of this year,” SPC Chairman J.M.C. Jayasekara said.
Currently, printing papers are unavailable in the country, so there is a severe scarcity. Moreover, the SPC does not have the capacity to meet the country's total demand for exercise books.
“In addition, we intend to manufacture local printing paper in 2024. We will also establish SPC sale centres in schools to encourage students to purchase our books at lower prices,” Mr. Jayasekara said.
The SPC's plan is to provide books to students for 40% less than the market prices, with the hope that market prices will eventually fall.
However with the country's stationery supply chain being hampered in the last five months consumers were experiencing almost weekly price hikes when purchasing these products.
Sarath Kumara Mudannayake, owner of Rathna Stationery stores, has been in the industry for about ten years. He claimed stationery suppliers were experiencing the highest exercise book prices in history.
"A book that used to cost Rs. 45 or Rs. 50 now costs around Rs. 145. Such an expense is difficult for parents to bear. With these prices, how can a family of four children afford exercise books? Our businesses are shrinking by the day," he said.
“A ballpoint pen now costs Rs. 35 in retail stores, while wholesale traders sell them for Rs. 30 each. How can parents afford such high prices for everyday stationery?” he asked.
G. Jivarathnam, owner of Amara Traders, a wholesale stationery shop in Pettah, said there was a noticeable difference in stationery prices from before and after the COVID-19 lockdown.
Previously, retail traders would spend around Rs. 100,000 to buy wholesale stationery products, but at current prices, traders must spend around Rs. 250,000 to buy goods worth Rs. 100,000, he revealed. "Even large-scale stationery companies have had difficulty supplying the necessary quantities. If we ask for Rs. 50,000 in goods, we will receive Rs. 25,000 in goods. They also have a limited supply," Mr. Jivarathnam said.
Local banks failed to open Letters of Credit for their customers, and some stationery and printing paper importers had already ceased operations. This had compelled printing material suppliers and stationery manufacturers to raise their prices.
“Currently, the stationery business has fallen from 100% to 200%. The A4 sheet pack which was priced at Rs. 450 is now Rs. 2200. Now we only have trade from people who come to give these goods as donations. They collect a large amount at once to buy the goods,” Shantha Seneviratne from S. Lankan Traders said.
This February, the Sri Lanka Book Publishers' Association announced it would have to reduce the production of school exercise books by 70% due to a lack of raw materials. This would put more burden on consumers and will cause further price hikes, Mr. Seneviratne said.