Editorial
Untapped power of consumers
Tuesday 23rd January, 2024
Sri Lankan ministers are never short of lame excuses, which they are adept at fabricating. Never do they own up to their blunders, which have landed the country in the current predicament. When the economy went into a tailspin, they promptly blamed the war in Ukraine and the Covid-19 pandemic, but other countries did not face insolvency due to those global factors. They have undertaken to put the economy back on an even keel, but the question is whether those who cannot even manage the agricultural sector properly are equal to the task of achieving economic revival.
Agriculture Minister Mahinda Amaraweera has drawn heavy flak for concocting a theory to absolve the government of the blame for doing nothing to prevent the escalation of vegetable prices. He argued, the other day, that torrential rains had lashed all parts of the country for months, and therefore there had been a shortfall in the supply of vegetables, causing huge price increases. It would take some time for the prices of perishables to come down to the previous levels, he predicted, asking the public not to curse him.
Interestingly, no sooner had Amaraweera made that claim than the vegetable prices began to drop! The price of a kilo of carrot, which had gone up to about Rs. 2,500 a few days ago, came down to about Rs. 600 at the Dambulla Economic Centre yesterday. It is expected to decrease further, according to vegetable wholesalers. What has Minister Amaraweera got to say to this?
True, inclement weather causes temporary increases in vegetable prices, but the current situation is very unusual; it has obviously come about due to market manipulation by the politically-backed traders’ Mafia. Vegetable growers have been complaining that they have to dispose of their produce at extremely low prices although the retail prices of greens have gone through the roof. This alone is proof that market intermediaries are making a killing at the expense of both the producer and the consumer, and the government is not doing anything to tame these elements and protect the interests of the public.
Vegetable prices have shown a downward trend because the demand for greens has gone down drastically over the past several days. Consumers did not organise themselves against the traders’ Mafia, but it so happened that their decision to cut down on vegetable consumption owing to extremely high prices put paid to market manipulations. Previously, the public reacted in a similar manner when the prices of biscuits were jacked up. They reduced biscuit consumption. When huge stocks of biscuits remained unsold on shelves, their prices dropped.
In this day and age, it is not difficult to organise consumers against the market intermediaries who exploit the farming community and the public alike, with impunity. This is a task for the various consumer rights groups that conduct public protests. Instead of making noises, they ought to take action. The media, both mainstream and social, can be used to raise public awareness of the exploitative practices adopted by middlemen as well as producers in some cases and make consumers curtail the consumption of the products whose prices are kept artificially high.
If consumers are inspired to assert their power, they will be able to bring the egg Mafia, as well, to its knees in next to no time. If the demand for eggs drops considerably and remains low for a couple of weeks, the unscrupulous egg wholesalers will be compelled to bring egg prices to an affordable level or destroy their stocks. This is the only language the traders’ Mafia understands. The same modus operandi can be adopted to deal with other exploiters such as the trishaw fraternity and the bakers’ Mafia.
Editorial
Rice woes persist
Saturday 28th December, 2024
The JVP-led NPP government has failed to carry out its promise to import rice due to some flaws in the process of preparing tenders. It has asked for some more time to bring in the promised rice from India. Private traders have already imported 72,000 MT of rice. The state sector stands exposed for its inefficiency.
Is it that the new government is not competent enough to carry out even a simple task like importing rice, which successive governments resorted to, as an ad hoc measure, to address the issue of escalating prices of rice, instead of taming the Millers’ Mafia? Why the incumbent administration has botched the process of tendering for rice imports defies comprehension. Has anyone scuttled the government’s import plan in support of the private sector importers, as alleged by the Opposition, and some consumer rights protection groups, which have called for a probe?
It has been pointed out in Parliament that the government is taxing imported rice at the rate of Rs. 65 a kilo and boosting its revenue instead of making a serious effort to make rice available at affordable prices vis-à-vis market manipulations by the Millers’ Mafia. The Opposition has alleged that some powerful millers are also among the rice importers, and they are getting the best of both worlds.
Close on the heels of the JVP-led NPP’s victory in the last presidential election, the owner of Araliya Rice, Dudley Sirisena, who is one of the wealthy millers blamed for manipulating rice/paddy markets and exploiting farmers and consumers alike, promised at a media briefing to ensure that there would be enough rice in the market at the then maximum retail prices stipulated by the Consumer Affairs Authority. The medium/small scale millers panicked and released all their rice stocks to the market, but the millers’ cartel did not do so and is now making the most of the artificially created rice scarcity to earn unconscionable profits.
The government, in its wisdom, increased the maximum retail prices of rice by Rs. 10 and played into the hands of the rice hoarders. As a result, the price of nadu rice has increased from Rs. 230 much to the glee of the powerful millers! The price of this particular variety of rice, which is popular among a majority of Sri Lankans, was about Rs. 180 before the 21 September presidential election.
President Anura Kumara Dissanayake and other JVP/NPP stalwarts have gone on record as saying that the country has produced enough paddy, and the rice shortage is due to hoarding, but the government has baulked at taking on the hoarders and is trying band-aid remedies.
The government has extended the deadline for rice imports until 10 Jan. 2025. The large-scale millers will ensure that more rice is imported before the commencement of the next harvesting period so that they can release some of their stocks, flood the rice market, bring down the prices of rice and exploit farmers by purchasing paddy at cheaper rates. Thereafter, they will hoard their paddy, causing the prices of rice to rise. They also leverage their influence derived from their financial prowess to delay bank loans for small/medium-scale millers so that the latter cannot begin purchasing paddy when harvesting commences.
Previous governments did not care to put an end to the powerful millers’ sordid operations, and the people expected the incumbent administration to be different due to its rhetoric and numerous promises. That is why they voted overwhelmingly for it in last month’s general election, enabling it to secure a two-thirds majority in Parliament. But the millers’ cartel with political connections and huge slush funds, continues to call the shots. Have the people been taken for a ride again?
Editorial
Good riddance!
Friday 27th December, 2024
A cascade of tectonic shifts triggered by the 2022 uprising or Aragalaya during the Gotabaya Rajapaksa government has reshaped Sri Lanka’s politics in such a way that more than 6,000 politicians have so far gone out of circulation, according to an election monitoring outfit. Executive Director of PAFFREL (People’s Action for Free and Fair Elections) Rohana Hettiarachchi has reportedly said those politicians were left with no alternative but to call it quits because they knew that they had absolutely no chance of re-election.
Among them are some prominent figures including political party leaders. This is not something the public bargained for. Those politicians were expected to remain active in politics until they went the way of all flesh. The news of their mass exit from politics must have gladdened many a heart, but the problem is that in this country the political flotsam and jetsam swept away by occasional giant waves like the one we witnessed last month are washed back ashore after drifting for years. There is also no guarantee that the newcomers to politics will be any better.
We have seen mountains in labour groan but deliver mice on several occasions during the past several decades. The current dispensation, which promised a revolutionary change in every sphere, has chosen to maintain the status quo; what we see on the economic front is a continuation of the policies and programmes of the previous regime to all intents and purposes. The JVP-led NPP made a solemn pledge to solve the problem of rice market manipulations, with a single stroke of the presidential pen.
But a cartel of millers continues to exploit farmers and consumers alike, and the government has opted for a shameful capitulation; it has restored to rice imports, which it vehemently condemned previous administrations for. The President’s pen has apparently run out of ink! There is hardly any difference between the new government’s foreign policy and that of the previous administration.
The Gotabaya Rajapaksa government was in the grip of a coterie of self-styled intellectuals, who banded together to form ‘Viyathmaga’, and grabbed key positions in the state sector following the SLPP’s electoral victories. They ruined that regime. The current administration is also swayed by a me-too version of ‘Viyathmaga’, and some of its members have been exposed for flaunting fake doctorates! Above all, it’s all hat and no cattle where the NPP’s promise ‘to catch thieves’ is concerned.
What has unfolded so far under the current administration is like a replay of the early stages of the Yahapalana and SLPP governments. It is hoped that the new leaders will care to bring about the revolutionary change they promised before the presidential and parliamentary polls so that their rule will not end up being something like a remake of an old movie or stage play with a new cast.
“Pity the land that needs a hero”, Brecht has famously said. Since Independence, Sri Lanka has been looking for heroes, fallen for the wiles of numerous bogus messiahs and seen many false dawns. Even a shaman succeeded in making a killing by selling an untested herby syrup, called Dhammika peniya, which was touted as a cure for Covid-19; he even duped some political leaders into swallowing it.
The news about the riddance of 6,000 politicians reminds us of an Aesopian fable, where a fox has one of its legs stuck in a rock crevice in a shallow stream. Having struggled to free itself but in vain, the poor creature is lying exhausted and covered with ticks when a small animal which happens to pass by offers to remove the ticks as it is not strong enough to do anything else.
The fox says the parasites had better be left untouched because they are already bloated and therefore cannot suck anymore blood, and if they are removed another colony of ticks will descend on it and bleed it dry.
Sri Lanka has been in the same predicament as the aforesaid fox all these years; successive governments have drained its Treasury dry with reckless spending and corruption. One can only hope that the new dispensation will be different. Hope is said to spring eternal.
Editorial
‘Swindlers List’
Thursday 26th December, 2024
Power not only corrupts but also makes the wielders thereof cherish the delusion that popular mandates are cartes blanches for them to do as they please and be above the law. This fact has been borne out by the despicable manner in which the President’s Fund has been misused, if not abused, under successive governments.
Thankfully, the President’s Fund is now under the microscope, and numerous questionable fund allocations have already come to light. It has been revealed that the Executive Presidents during previous dispensations arbitrarily allocated money from the President’s Fund to their kith and kin at the expense of the needy on the waiting list.
The JVP-led NPP government has released a list of politicians who have obtained money from the President’s Fund over the years in violation of the terms and conditions governing the provision of relief therefrom. All of them have obtained huge sums of money by leveraging their political connections, and those shameless characters include a tainted politician who fell off an upper-floor balcony of a hotel down under, over a decade ago, while trying to enter an adjoining room a la Spider-Man; he eventually got entangled in a web of lies of his own making.
Embroiled in an academic credentials scandal and unable to make good on its election promises and solve burning issues such as the shortages of rice and coconut and the soaring prices of essentials, the NPP government is all out to divert attention from its failure by carrying out propaganda attacks on the Opposition, which is on the offensive. However, the release of the Swindlers List, as it were, and the police probe into the misuse of the President Fund are most welcome. This has been an unintended benefit of the ongoing propaganda battle between the government and the Opposition.
As for financial assistance from the President’s Fund for patients, one of the conditions stipulated by law is that the family of the patient seeking relief is without adequate financial resources to meet the cost of surgery/treatment. It has also been specified that the monthly income of the family including the patient, spouse and unmarried children should not exceed Rs. 200,000, and a Divisional Secretary should recommend that the person concerned is eligible for financial assistance.
The President’s Fund relief scheme for patients was launched to provide financial assistance to low-income individuals who lack the means to bear the costs of medical treatment or surgery. It is therefore wrong for the President and/or the governing board of the Presidential Fund to grant funds to those who have the wherewithal to afford treatment or surgery either in this country or overseas.
Obviously, politicians who spend colossal amounts of money on their election campaigns and live the high life, residing in palatial houses, moving about in super-luxury vehicles, and travelling the world, are not eligible for financial assistance from the President’s Fund.
The CID is reported to have been called in to investigate the misuse/abuse of the President’s Fund. One cannot but agree with the incumbent government on this score although it is driven by an ulterior motive. One can only hope that the ongoing investigation will reach a successful conclusion, and legal action will be instituted against all those who are responsible for the misappropriation of state funds.
The Swindlers List submitted by the NPP government to Parliament is incomplete; it contains only the names of Opposition politicians. The public has a right to know how all Presidents have misused/abused the President’s Fund since 1978. Are there any individuals connected to the JVP or the NPP among those who have received financial assistance from the President Fund fraudulently, as claimed by Opposition MP Dayasiri Jayasekera, one of those exposed by the government?
Let Minister and Cabinet Spokesman Dr. Nalinda Jayatissa be urged to make public a complete list of beneficiaries of assistance from the President’s Fund instead of releasing names selectively to settle political scores. The NPP government, which is full of self-righteous members, should be able to do so if it has nothing to hide. It is hoped that the Opposition MPs who have not abused their political connections to obtain assistance from the President’s Fund will crank up pressure on the government to do so.
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