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The need for an increase in the price of milk powder

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By Sanjeewa Jayaweera

The steep price increase in essentials like milk powder and cooking gas has caused much debate and anger amongst consumers. The opposition politicians are milking the angst among the public to score some points. There is no doubt that any increase in food prices causes the greatest anger and frustration amongst those struggling to make ends meet. The inability to provide dependents three square meals a day is a failure that causes a great deal of mental anguish.

In the developed world, having three meals a day is taken for granted, whilst in many developing countries, this is still not possible for a particular segment of the population. Therefore, it is the responsibility of the governments that we elect to plan and develop the economy to create productive employment so that all non-disabled adult citizens are gainfully employed. Unfortunately, successive governments in Sri Lanka have miserably failed in this area. The reasons for such failure are too numerous to be discussed in this article.

The purpose of this article is to share certain information which hopefully will enable the readers to understand better the challenge of maintaining stable prices of imported commodities and how poor decision making by GOSL makes matters worse.

It must be understood that prices of imported commodities are not within the control of the importer, who in most instances are private enterprises and individuals. Commodity prices in the world market are governed by many factors ranging from droughts and floods that impact the harvest and, at times, export bans. Currently, post covid supply chain constraints are also contributing to a surge in prices the world over as demand exceeds supply. Prices are always a function of demand and supply, and when demand exceeds supply, it is natural for prices to up.

Milk powder is an essential item amongst families with children. Due to its nutritional value, despite some in the medical profession claiming otherwise, many parents ensure that it is included in the grocery list. Therefore, the inability of parents to procure this vital commodity due to either it being too expensive or because it is not readily available leaves many such parents seething in anger. A recent news telecast before the price increase showed a long queue of persons waiting to purchase a packet of milk powder, with many complaining that they have stood for more than three hours. Some were claiming that they had travelled a distance of more than 10 kilometres.

Unfortunately, the public is not fully aware of the reasons for either the need for a sharp increase in the retail price or the cause for the shortage. The Global Dairy Trade website (www.globaldairytrade.info) shows that a metric ton of full cream milk powder on November 20, 2020, cost US $ 3,037. This price excludes freight. The retail price of 1 kg milk powder in Sri Lanka was then Rs. 945/-.

The world price then increased to a high of US $ 4,364 per ton by March 02, 2021. It has since fallen to US $ 3,749 per ton by October 05, 2021.

In addition to the significant price increase in US Dollar terms, the Sri Lanka rupee, which stood at Rs. 184 per US Dollar in October 2020 has depreciated to Rs. 203 by October 2021.

In percentage terms, the increase within the 12 months is 35 per cent whilst in March 2021, it was 50% at its peak. In addition to the rise in world prices and the depreciating rupee, the importers also had to bear an increase in freight costs, which have doubled.

The unfortunate aspect of this saga is that GOSL, through the consumer protection authority, did not allow the retail price to increase from Rs. 945. As milk powder is considered an essential item, its retail price is mandated by the GOSL.

In such a scenario, the importers were bearing significant losses. The net result was that they either stopped importing milk powder or reduced the quantity imported significantly, thus causing a shortage of milk powder in the market. When an item is sold at a loss, the more you sell, the more you lose.

The fact that the GOSL did not grant a price increase is unfathomable. It is basic common sense that no private enterprise is able or willing to bear losses. Private business people are the favourite whipping boys for politicians, media, and the public in our country. No doubt some racketeers fleece the public. People need to understand that those who engage in business activities invest their funds, invariably savings in expectation of getting a reasonable return. It is no different to us as individuals investing our savings in fixed deposits. We rightfully expect a decent return which till recently was around 10 per cent for the year. Therefore, in my view, given the risk taken by those venturing into business, a return between 15 per cent to 20 per cent after tax is a fair return. Many don’t achieve such a return, and quite a lot fail in their business ventures and lose their savings.

The alternative is for the GOSL to be the importer. However, given the repeated scams that have been perpetrated by those working in the state sector, such as Sathosa, we know that government enterprises are ill-suited for such activities. In that case, the private importers should be allowed to operate in an environment where the objective of cost-plus profit is achieved, and it is for the GOSL to facilitate this.

Businesses are often accused of not bringing down prices once increases are granted despite world prices reducing, and the general belief is that business enterprises are making super-profits. In most instances, this is not the case. The actions of the GOSL, which many are unaware of, prevent the prices of such commodities from being reduced. I want to share an example of how the GOSL uses its power to levy duties and taxes on imports that prevent importers from passing on the benefit to the consumer.

The GOSL enforces customs duty at the point of import which is a cost that needs to be added before arriving at the retail price. It has been and is the policy of the GOSL to increase the duty component when world prices of essential items reduce and reduce such duty when world prices increase.

The example given below is based on records maintained by a former colleague of mine who was the purchasing director. The company that we worked for imported Skimmed Milk Powder (SMP) as a raw material.

It should be noted that the world price shown would have fluctuated during the period. Therefore, I have shown the world price on the date when the duty change was implemented.

I trust the above schedule explains why importers of milk powder are constrained from passing on the benefit of reducing prices to the consumer. Thus, it is evident that the GOSL is surreptitiously keeping the benefit to themselves and not allowing it to be passed on to the consumers.

The rationale of pricing imports that I have outlined above is equally applicable in determining the price of gas, petrol and diesel. Even state enterprises like the Ceylon Petroleum Corporation and Litro Gas should be allowed to trade on a formula of cost-plus profit. There is no alternative to this principle.

My contention and that of many who are familiar with Economics and Finance are that by not passing on the cost increase through a price formula based on cost plus profit, even those who can bear such price increases are subsidized. There will be some consumers for whom the increased cost of petrol, diesel, gas and milk powder will have no consequences; there will be some consumers for whom a certain degree of adjustments to their monthly expenditure will need to be made and a degree of belt-tightening to accommodate such price increases. Some of these adjustments might mean resorting to carpooling, travelling by train or bus. That is the choice that needs to be made. However, there will be a segment of the population who are unable to bear such price increases. Therefore, the GOSL should provide a monetary allowance to bear such price increases and make them responsible for allocating their funds. I say this as, at times, I am perplexed when I see some of the people who flock to the Liquor shops when they are opened after a period of closure.



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Decolonising education and critical thinking

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IN BLACK SKIN, WHITE MASKS (1952), FRANTZ FANON, the political philosopher from the French colony of Martinique, showed the importance of native language for the colonised to gain independence, decolonise knowledge and come out of their subordination.

By Darshi Thoradeniya

I would like to throw out some ideas on the importance of critical thinking in higher education especially in relation to history teaching by expanding the profound thoughts on decolonising education, expressed by Harshana Rambukwella, earlier in this column.

Just as educational institutions served to colonise subjects in colonial settings, the decolonising project also started through education. In the discipline of history, for instance, we constantly attempt to decolonise knowledge that has been created about the past and create new knowledge about the past through critical inquiry. In other words, critical inquiry is the tool that is used to decolonise knowledge. Thus, these two elements – decolonising knowledge and critical thinking – need to be linked in our discussions of higher education in post-colonial settings like Sri Lanka.

As Louis Althusser (1918-1990) argued, educational institutions are ideological state apparatuses used to promote and reinforce the ideology of the dominant classes. Through the national curriculum, government and private schools, in Sri Lanka, carry out this task meticulously. However, universities do not have a national curriculum; instead they have a subject benchmark statement that needs to be conceded to. Humanities and social sciences curricula are designed to generate critical engagement with key concepts, theories, texts and events. Thus, the school curriculum is unlearnt and critical thinking learnt at the university.

Critical thinking can take different forms according to the field of inquiry, but being able to question existing taken for granted knowledge is a crucial aspect of critical thinking. It is when knowledge is problematised by asking questions, such as who produced the knowledge, for whom it was produced, and by analyzing what sources were drawn upon to create the knowledge, do we become aware of the colonial mindset that we have developed and nurtured over the years through the school curriculum.

This is best illustrated through the way we teach and learn history in schools and perhaps even in some universities. Within the school curriculum, history is taught with an overwhelming emphasis on Sinhala Buddhist culture as if it is a pure, untainted culture sustained over 2500 years. This ideology is put forward mainly through uncritical engagement with sources. Mahawamsa (the great chronicle) is a key primary source that has shaped the history of Sri Lanka. At school level, we are not taught to question the intentions of the author, the sources analysed nor the audience for which the Mahawamsa was written. Sinhalese Buddhist culture became the dominant ideology with the involvement of colonial administrators, such as Alexander Johnston – the Chief Justice of Ceylon from 1811 to 1819 – who played an influential role in the translation of the Mahawamsa to English in the early 1800s. By neglecting these questions, we overlook the fact that this island has been situated in the trade route between the West and the East since the 12th century, and the possibilities of other narratives of ethnicity that could emerge by virtue of its location. Such possibilities are unfortunately not explored in schools because of lacking critical engagement on the historiography of Sri Lanka.

History writing in the colonies was essentially a production of colonial masters, hence a production of colonial knowledge. These histories were written by European travellers, missionaries, officials and administrators of trading companies, such as the Dutch East India Company or the British East India Company. Renowned Indian historian Romila Thapar charts how 19th century utilitarian and nationalist ideas in Europe influenced the Scottish economist and political theorist James Mill making him interpret Indian civilisation as static, leading him to divide Indian history into three sections – Hindu civilisation, Muslim civilisation and the British period – in his work History of British India (1817). The static character of Indian society with its despotic rulers became accepted as “truth” in Indian history as British colonial administrators were mandated to read the text before taking up duties in colonial India. The idea of oriental despotism would also justify the introduction of the British legal and administrative system to India. This colonial historiography remained unchallenged until decolonisation of knowledge took place in mid-20th century India.

When looking at the historiography of Ceylon, we can see many parallels with Indian historiography. Colonial administrators, such as Emerson Tennant and Codrington wrote a somewhat linear, continuous history of Ceylon emphasizing a Sinhalese Buddhist narrative centered on the kingdoms of Anuradhapura, Polonnaruwa, Dambadeniya, Yapahuwa, Kurunegala, Gampola and Kotte. By the 1970s, a group of Marxist historians started applying critical inquiry to the discipline of history and actively decolonising historical knowledge.

In Black Skin, White Masks (1952), Frantz Fanon, the political philosopher from the French colony of Martinique, showed the importance of native language for the colonised to gain independence, decolonise knowledge and come out of their subordination. He believed that human imagination could only be truly expressed through native language and could never be accomplished through the language of the colonial master. Taking this language argument further, Palestinian American public intellectual Edward Said showed in his seminal work Orientalism (1978), how Eurocentric prejudices shaped peoples’ imagination of the Orient (i.e., the Middle East and Asia) as barbaric, backward and traditional, and how such understandings were ultimately bestowed the status of scientific knowledge.

Similar decolonising experiences and projects can be traced in Latin American and African settings. Latin American cultural anthropologist Walter Mignolo believes that formal educational institutions established by the colonisers must be dismantled in order to decolonise the mindset of the people. Otherwise, people’s imaginations are trapped within the knowledge that is produced by these institutions. If people are to freely imagine and experience epistemic knowledge, they should be free from formal boundaries.

The faculties of humanities and social sciences in state universities have a gigantic task in hand. How should we further the project of decolonisation? A first step might be to start teaching Sinhala, Tamil and English languages to all humanities and social sciences undergraduates to facilitate understanding the indigenous cultures in which a specific knowledge is produced. At present, history writing mainly takes place within bilingual settings, and very rarely in trilingual settings, because very few historians are trilingual in Sri Lanka. The inability to comprehend the third language (i.e., Sinhala or Tamil) limits the historian from understanding the mentality of the so called ‘other’.

If we do not know the ‘other’ colonial subject, how are we to write a history of Sri Lanka? Not knowing the other’s language means we can only produce knowledge about one particular segment of society. Historians conversant in Sinhala and English end up servicing the hegemonic discourse (i.e., Sinhala Buddhist ideology), while historians conversant in Tamil and English end up creating an alternative narrative that is very unlikely to reach main stream historiography. There lies a fundamental problem that we need to address in decolonising university education. One suggestion in this regard would be to initiate exchange programmes between departments of national universities so that undergraduates as well as staff will be able to engage with the decolonising project in a holistic manner.

(Darshi Thoradeniya is a Senior Lecturer attached to the Department of History at the University of Colombo.)

Kuppi is a politics and pedagogy happening on the margins of the lecture hall that parodies, subverts, and simultaneously reaffirms social hierarchies.

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Australian antics and Djokovic’s disgrace!

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By Dr Upul Wijayawardhana

It was a drama like no other! It is rarely that one and all involved in a saga ends up being a loser and that is exactly what happened with the ‘Australian Open’ fiasco. Novak Djokovic, his family, Tennis Australia, The Government of Victoria, Federal Government of Australia, the Serbian President and even the media have exposed chinks in their armour! Perhaps, the only people delighted would be our politicians who could now claim, justifiably, that incompetence is a trait shared by their ilk in the developing world, too!

Many, especially youngsters, would look up to sports stars for inspiration. Though many sports are no longer what they used to be, having undergone an unholy metamorphosis to be businesses, still a greater degree of honesty is expected of sports stars than from politicians. After all, sportsmanship is a term often used to express fair and generous behaviour. Considering all this, perhaps, the bulk of the blame should go to Novak Djokovic, the number one male tennis player who could have created history, had he won the Australian Open by being the Male Tennis player with the most ‘Grand Slams’. Perhaps, in his overenthusiasm to achieve this, he attempted to find ways to compete without being vaccinated for Covid. But it failed, and the 11-day drama was finally over when he was deported on Sunday evening.

In a way, it is very unfortunate that Djokovic had to make that sacrifice for the sake of a strong-held belief of his. Though he has not been directly involved in any anti-vaccination campaigns, his refusal to have the Covid-19 vaccine had been made use of by anti-vaxxers on social media. At the very beginning of the epidemic, he got into trouble by organising a tournament in Serbia, where a number of players, including himself, got infected. Though there were rumours that he was not taking vaccines due to medical contraindications, it is very likely the actual reason is his going by the opinion expressed by some specialists that infection gives better immunity than vaccination.

Though Djokovic’s vaccination status had been shrouded in secrecy for a long time, what transpired during this fiasco confirmed that he was not vaccinated and that there were no medical contraindications for vaccination. Whatever your beliefs or however important you are, one is still bound by rules and regulations. Australia is among the countries that imposed the strictest controls during the pandemic. In fact, many Australian citizens were stuck in many countries unable to return home, some for over a year. Even now, only dual vaccinated are allowed entry. If Djokovic had wished to stick to his principles, he should have done the honourable thing by staying out of the tournament, which is what some other players did.

It is surprising that Djokovic was given a medical exemption to enter Australia by two different independent health panels––one commissioned by Tennis Australia, the other by the state government of Victoria––after testing positive for coronavirus in mid-December, given that the rules are otherwise. Perhaps, they were more concerned about the success of the Australian Open tournament and were willing to bend rules! It is even more surprising that the Federal Government did not question this as immigration is not a function devolved to state governments. The moment Djokovic announced on Twitter that he would be attending, there was a hostile public reaction which may be the reason why Djokovic was detained on arrival but what followed could easily have been avoided had the Immigration Minister taken pre-emptive action. Whether the state government and the federal government being run by two different parties had any bearing on these actions is a moot point.

Djokovic made a false declaration that he had not been to any other country recently in spite of clear evidence to the contrary but later blamed his team for making the error. Surely, he should know that the responsibility is his, once he signs any form! When he had the infection in mid-December, rather than isolating himself, which even anti-vaxxers would do, he attended a number of indoor public events. And his explanation; he did not want to inconvenience the French TV team there to interview him. Serbian President overlooked all this, to blame Australia!

The state judge reversed his visa cancellation citing procedural issues. A BBC report exaggerated this by stating that the judge had allowed him to play in the Australian Open! Although the Immigration Minister could have taken immediate action, he chose not to do so, taking a number of days to cancel the visa on ‘Health and good order grounds. To hear Djokovic’s appeal the federal high court sat on a Sunday, just like our courts being kept open to grant bail to MPs! The three judges unanimously rejected his appeal, the Chief Justice stating that the court ruling was based on the legality of the Minister’s decision, not on whether it was the right decision to make. Interestingly, BBC implied that Djokovic’s efforts would reach fruition!

Perhaps, the federal government was forced to act by the injudicious press conference held, after the success of the first appeal, by Djokovic’s family in Belgrade, wherein they attempted to portray him as a poster-boy for choice. It had a disastrous ending by the family terminating the press conference when journalists questioned why Djokovic had attended functions soon after testing positive! After the deportation, Djokovic’s father has called it an assassination, of all things, failing to realise that he was hampering the chances of reversal of the three-year entry ban to Australia, Djokovic was facing! Serbian political leaders hitting out hard, calling it scandalous treatment was not very diplomatic, and did not help Djokovic.

The lesson we can learn, except that politicians play politics wherever they are, is that federated states have their own problems, as illustrated by this sad, winnerless episode.

There were varying shades of reactions to this saga. Perhaps, the words of wisdom came from Rafael Nada, who said, “He made his own decisions, and everybody is free to take their own decisions, but then there are some consequences”

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Historic task—a non-racist and human security ideology

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By Jehan Perera

The media has reported that President Gotabaya Rajapaksa will be announcing a new policy on national reconciliation in his address to Parliament at this inaugural session following prorogation last month. Apart from bringing peace of mind and comfort to those bereaved by the three decades long war, the central issue of national reconciliation is to find an equitable solution to the ethnic and religious conflicts that have plagued the country since the dawn of independence more than seven decades ago.   The focus now needs to be on the development of the country and its economy rather than to support any parochial or ethnic cause and continue with the divisive politics of the past. It is only by this that the country can get back on its feet, and as many countries which had done so following traumatic events.  President Rajapaksa was elected by a large majority with this hope in mind.

Indeed, it is unlikely that any other President could have faced the multiple crises the present government has got the country into and remained with its 2/3 majority intact, as it has done so far.  The recent announcement of the SLFP, headed by former President Maithripala Sirisena, that it would remain within the government alliance, while criticising it from within, is an indicator of the government’s stability.  This follows the similar declaration by the three leading cabinet ministers from the 11 party alliance of small parties within the government, who have filed cases in the courts against the government.  They too have said they would remain within the government and continue to challenge its decisions that they deem to be incorrect.

There are two key reasons why the government has a measure of stability despite the deteriorating economic situation that is impacting severely on the wellbeing of the majority of people.  The first is the pragmatic calculation of the government leadership that it is better to have its critics within the government than out of it.  It seemed possible that the sacking of Minister Susil Premjayantha for being overly critical of the government would be the start of a purge of internal critics of the government that could cause an unravelling.  But so far it is only Minister Premjayantha, who has had to pay the price for his independence.  This has been explained by the fact that the former minister was a member of the ruling party itself, unlike the other critics who belong to other parties.

SECOND STRENGTH

Due to the multiple perspectives within the government, and which represent the diversity of the government alliance, it has been able to reach out to the widest possible swathe of society.  At the same time, it is able to woo diverse sections of the international community, including the three big international formations that hold the key to the country’s economic progress.  These are China, India and the Western countries. China is continuing to provide economic resources on a large scale along with India.  Both of these big powers seek to improve their position of influence on Sri Lanka and ensure a physical presence in the country which is being granted. Dealing with China has been the easiest, as it only seeks to gain more economic and physical assets within the country to ensure its permanent presence.

Dealing with India and the Western countries is more challenging as they require political concessions as well. In the case of India it is a political solution to the ethnic conflict which involved power-sharing with the minority Tamil community.  In the case of the Western countries it is progress in terms of protecting human rights.  With Sri Lanka being a country of interest to the UN Human Rights Council in Geneva, this means that its human rights record is scrutinised every three months.  The forthcoming session in late February, which continues through March, will be especially important.  The Sri Lankan government is expected to present a written report on its progress in terms of issues of accountability, truth seeking, reparations and institutional reform.  The response of the majority of countries at the UNHRC can have a significant impact as it would influence the European Union’s pending decision on whether or not to suspend its GSP Plus tariff privilege which is a source of support to the Sri Lankan economy.

In this regard, it will be necessary for the government to rein in its champions of ethnic nationalism and national security that give emphasis to the perspective of the ethnic majority community alone.  This is going to be the great challenge as the second strength of the government is its ideology of ethnic majority nationalism and national security which it invokes at frequent intervals, and especially when it faces challenges.  These help to keep the ethnic majority’s loyalty to the government. But they alienate the minorities and also those sections of the international community who are concerned with human rights. The country remains deeply traumatised by three decades of internal war, in which acts of terrorism could strike anywhere, a separate Tamil state led by the LTTE was a short distance away and the centre itself was at risk of being taken over violently by the JVP.  These crises led to extreme measures that have left indelible scars and memories on the people that are easy to reinvoke.

BOTCHED ATTEMPTS

The botched attempt to explode a bomb in All Saints Church in Colombo and the botched police investigation into it have given the impression of a created event that has been questioned by the Catholic Church.  The bomb discovery, in which the Catholic priests did more to uncover evidence than the police, served to divert attention from the 1,000, day commemoration by the church of the 2019 Easter bombings, which killed over 280 persons, set the stage for conflict between Catholics and Muslims and reinforced the need for national security, and racists, to take the centre stage of national politics. On that occasion, as on this, Malcolm Cardinal Ranjith, the Archbishop of Colombo, played a crucial role in preventing an escalation of the crisis and in calling for the truth behind the bombings to be known. Like the prophets in the biblical tradition, he is increasingly powerful in speaking truth to the rulers, even truths they do not wish to hear.

Events such as the Easter bombing, and now this latest incident, give the impression of security failure that is detrimental to the country’s internal communal harmony and to the international image of the country as a peaceful and secure one for both investment and tourism. Sri Lanka is yet to emerge from the thrall of nationalist politics, and its falsehoods and violence, where political leaders make deliberate and purposeful use of communal differences to win votes and come to power.  They have succeeded time and again in this dastardly practice, but with it the country has failed to reach its full potential time and again.  The costs have been unbearable, whether in terms of lives lost, properties destroyed and economic growth stymied.  Sri Lanka has one of the largest standing armies in the world, with the number of its military personnel being five times larger than that of Australia, though the populations of both countries are about the same.  This means economic resources being taken away from development purposes.

The historic task for President Gotabaya Rajapaksa and the government is to make a shift away from a mindset that emphasises the interests of the ethnic majority and national security being the preserve of the security forces to a new mindset that includes the ethnic minority and sees human security and wellbeing as the country’s need. The Sri Lankan state needs to consider all its people as citizens with equal rights, and not as ethnic majorities and ethnic minorities to be treated differently.  And it needs to give priority to human security and wellbeing where gas cylinders do not explode and people have food and education at affordable prices. Both religious leaders and political leaders need to come up with an ideology of the wellbeing of all in which solutions that are beneficial to all are found, where basic needs of all are met, and there is no divide and rule, which is a recipe for long term failure.

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