The ban on crowd gathering in view of the Covid-19 epidemic led to cancellation of the usual events that is a feature of the Sinhala and Tamil New Year festivities. But the practice of visiting the homes of relatives and friends with “rasa kavili” could have gone ahead as usual. But this was greatly limited this New Year, mainly due to the high prices of food items.

It is unfortunate that the Government has done little to bring down prices, specially of food items. Present scientific studies show that the malnutrition level has gone up to a record level of 18% and that the poverty level has reached 60%. The outcome is a high level of hunger, and many families have only one proper meal a day.

The Lanka Sama Samaja Party (LSSP), along with the SLCP, has called on the Government to strengthen the Cooperative Movement and ensure that essential food items are made available at a reasonable price. The high price, specially of vegetables and fruits, is due to massive profiteering by middlemen. The farmer gets a pittance and the consumer is fleeced. The LSSP appeals to the Government to take the side of the farmer and the consumer, not the middleman.

Active intervention by the Government is required if prices are to be brought down. President Gotabaya Rajapaksa has shown his concern and suggested that the way out is to produce more. Theoretically, if the supply exceeds the demand, the prices should come down. But unfortunately in Sri Lanka this does not happen. One reason is that the middlemen have their own stores and stock the extra produce, create an artificial scarcity and raise prices.

At the butt end of criticism are two companies which buy the paddy at rock bottom prices. They hold the stock in their massive stores. They have developed a monopoly of the milling industry with their large mills, putting the small millers out of business. Thereby, they control the supply of rice in the country, making huge profits from all consumers.

This calls for strong determined action by Government. The state must intervene actively. When the global drought and food scarcities occurred in 1972, the Sirimavo Bandaranaike Government with Dr. N M Perera, the LSSP leader as the Finance Minister, strengthened and expanded the Paddy Marketing Board and its Stores, buying rice from the farmers at the fair guaranteed price. The Marketing Department and its stores bought the vegetables and fruits at a fair price from the farmers.

These were supported by Sathosa with regard to imported goods and the CWE with regard to local produce, as wholesellers. The consumer got all his requirements at a fair price through the retail outlets of the Cooperative stores. The profiteering by the middlemen and private traders dropped drastically. They were forced to come down in their prices. The LSSP calls upon the Government to take similar action now.

This situation is aggravated by the rural debt crisis. Most families are deeply in debt and are forced to sell their produce at low prices to the mudalalis and local money lenders. Once they settle their loans at harvest time, to cover the cost for the next kanna and harvest (when money comes in to the farmer) he is compelled to take further loans. The farmer is caught in a debt trap which keeps him in poverty. The Rural Banks can give loans at a low interest level for all types of agriculture but for some reason he farmers are not made aware of this.

There should be an active drive to make the farmers aware of this route to escape the debt trap. The Central Bank was giving loans to Rural Banks from a Special Fund at a low annual interest rate of 7%. It is the duty of all officials to inform the farmers and ensure that they get the benefits and escape from the debt trap. The politicians and the officials must not allow the middlemen to get their profits at the expense of the farmers and the consumers.

The people are facing a very difficult time not only because of the high cost of living, but also due to the drop in incomes. Many garment factories are closing down or cutting staff and even salaries. This applies to a varying extent to many private institutions and shops. The Government has made some effort to help these private institutions but it is not adequate. The large number who are going hungry must be provided with food either as dry rations or cooked meals immediately. I appeal to the Government to delay its development program. Highways can wait. The immediate need is to feed the hungry. Give this first priority.

At this time of crisis the private sector too should share the burden with the Government. It is absurd to keep the upper limit of personal income tax to just 14%. In most European countries the initial minimum is 14% and it rises to around 45%. In some Scandinavian countries it is 60%. Sri Lanka should raise the upper limit to at least 45%. I hope that the Government will rectify this shortcoming as soon as possible.

The luxury lifestyle of the few must be checked soon as otherwise those who are hungry may be forced to take to the streets. The LSSP, SLCP and other Left parties are having a separate May Day celebration, as was done before on several occasions, while being in the Government. The working class have many grievances that need to be addressed. We hope to raise these matters on their behalf on Workers Day.

– Prof. Tissa Vitarana