Agriculture Minister Mahindananda Aluthgamage said that Emergency regulations were declared solely to provide essential commodities to consumers at a concessionary price and not to militarise the country as claimed by certain sections.
The Minister in an interview with the Sunday Observer said if President Gotabaya Rajapaksa wanted to militarise the country, he could have suppressed 847 protests carried out recently amid the Covid-19 pandemic. However, the President didn’t use Emergency regulations to control the protests conducted by the Opposition and various other trade unions.
The Minister said it will take nearly four months to pass an amendment to the Consumer Affairs Authority (CAA) Act as it should go to the Attorney General, then to the Cabinet and Parliament for approval. Therefore, these unscrupulous traders would have taken undue profits during this season as well. That is why Emergency regulations on vital food commodities were declared until the new law of the CAA Act is implemented.
Excerpts
Q: The SJB and the JVP have opposed the Emergency regulations declared relating to the provision of vital food commodities. They say the Consumer Affairs Authority Act is there to deal with such situations. Your comments?
A: Foreign news agencies attempted to give the impression that there is a food shortage in the country. That is why Emergency regulations were declared. There is no food shortage in Sri Lanka as highlighted by certain sections of the foreign media. I would like to state that there is only a food mafia in the country. We imposed Emergency regulations to control this food mafia. A kilogram of sugar is imported for Rs. 85, but six unscrupulous traders had joined together and sold a kilo of sugar for Rs.230. They hoarded huge stocks of sugar to create an artificial shortage and increase the prices of sugar in the market.
In addition, a kilogram of rice was sold between the rates of Rs.150 and Rs.225, but a Kilo of paddy was purchased from farmers for Rs.55. Similarly, attempts were also made to create an artificial shortage of gas and milk powder in the market. Gas and milk powder are imported by two traders.
The prices of rice in the market are decided by four traders, while sugar is imported by six traders. Therefore, it is obvious, nearly 20 traders manipulate the prices of essential commodities in the market. When they sell essential goods more than the control price, they can only be charged a fine of Rs.2,500 according to the Consumer Affairs Authority Act. What is the point of fining Rs.2,500 from a trader in the rice mafia, who is earning an income of Rs.50 billion for one season? Once the President assumed office, he instructed me to strictly deal with the rice mafia and take control of paddy prices under the Government. That is why we intervened to purchase paddy at the previous harvesting season and took control of paddy prices under the Government.
As the first step, measures have been taken to amend the Consumer Affairs Authority (CAA) Act and increase the fine of Rs.100,000 to Rs.2 million. However, it will take nearly four months to pass this amendment as it should go to the Attorney General, then to the Cabinet and Parliament for approval. Therefore, these unscrupulous traders would have got undue profits during this season as well. That is why Emergency regulations were declared until the new law of the CAA Act is implemented. These Emergency regulations were declared for the public welfare and to protect the consumers.
In addition, the Opposition attempts to create an impression that the country is heading towards militarisation due to the steps taken by the Government to declare Emergency regulations on essential commodities. If the President wanted to militarise the country, he could have suppressed 847 protests carried out recently amid the Covid-19 pandemic. However, the President didn’t use a state of Emergency to control the protests conducted by the Opposition and various trade unions.
I think President Gotabaya Rajapaksa is the first leader in the world, who offered a cup of tea to the protestors who staged protests in front of the Presidential Secretariat. The President has also reserved a separate place to conduct protests. The President is such a democratic leader.
Q: When there is no acute food shortage in the country as to why certain sections of the foreign media attempt to give the impression that the Emergency regulations were brought as there is a food shortage in Sri Lanka?
A: The UNHRC sessions are to be commenced in Geneva shortly. Therefore, certain sections attempt to create various fake news against the country. We categorically refute all these foreign media reports. These Emergency regulations on vital commodities were solely declared to safeguard the interests of the consumers and not to suppress the people or take the country towards militarisation.
Q: Opposition Leader Sajith Premadasa has urged the Government to withdraw the gazette notification, under which Emergency regulations were imposed on vital food commodities and instead activate the Consumer Affairs Authority Act. Your Comments?
A: The Opposition Leader has not read the Consumer Affairs Authority (CAA) Act and the gazette notification on the Emergency regulations. I am not ready to respond to the Opposition Leader’s claim as he hasn’t read any of these documents. First, we would like to ask the Opposition Leader whether he is aware of the date on which the gazette notification on the CAA Act was issued. Therefore, we should not panic on these statements made by the Opposition Leader.
Q: Some say that the country is facing the biggest economic crisis after independence. Your views?
A: There is some sort of economic crisis in the country. We don’t deny that. The key reason for this is that the Government revenue has declined due to the pandemic. The tourism industry has faced a severe setback and money doesn’t come from Sri Lankans who work in foreign countries. In addition, foreign investments don’t flow into the country. In such a circumstance, anybody can understand that there is a financial issue. However, we would successfully face this. Vaccination is the only solution to overcome this situation. Our intention is to complete the vaccination of all eligible groups including schoolchildren by the end of this year. We will be able to open the country and function as normal from next year. The people will have to tighten their belts only for another two to three months.
Q: The Opposition and certain other sections say instead of taking action to resolve the current financial crisis in the country, the Government through the Finance Bill has resorted to a practice of facilitating money laundering in favour of racketeers. Would you like to comment?
A: There are nearly 1,000 tax files in our country. There are over 10 million credit cards in our country. Each credit card holder does transactions of nearly Rs. One million to 1.5 million, but none of them pay taxes. This shows there is money in the hands of our people, but they have not legalised it. If we have passed this Finance Bill, no huge amount of money will come from overseas. We request the people who earn money in the country to legalise their money. Sometimes, a certain amount of money may come from foreign countries. However, our people have not legalised their money. Therefore, that is our prime target.
Q: The President has instructed the Trade Minister to take over the large-scale rice mills under the Emergency regulations, which don’t sell rice to the guaranteed price and release those rice stocks to the market. Could you explain?
A: Four large scale rice mill owners release 2 million to 2.5 million kilograms of rice to the market daily. However, once the Emergency regulations were gazetted, they have not released even 100,000 kilograms of rice per day.
They have hoarded huge amounts of rice stocks to create a rice shortage in the market. Therefore, instructions were given to the Commissioner General of Essential Services, if the rice mill owners don’t release their rice stocks to the market on time, take over the rice stocks and distribute them among the people at the guaranteed price. The CAA is now seizing such rice stocks hoarded by the rice mill owners.
Q: Farmers have hailed the decision taken by the Government to increase the import tax on big onions.
A: I made a request from the Finance Minister to increase this tax. We are reaping the big onion harvest. So, the prices gained by the farmers will come down. Nearly 30,000 metric tons of big onions are imported per month.
An import tax of Rs.15 has been imposed on a kilo of big onion. Then the local farmers will not get a fair price. There is a sufficient amount of big onions required for two months. Because 60,000 metric tons of big onions will come to the market in the next two months. Therefore, we made a request to increase the import tax on big onions only for these two months. This is a move to strengthen local farmers.
Q: What action has been taken against the large-scale rice mill owners and traders who have hoarded rice stocks?
A: All unregistered rice stores will be taken over by the Government. We won’t allow third parties to create a rice mafia in the market. All hidden rice stocks will be taken over by the Government. The biggest problem faced by the country today is there are middlemen in business. There are middlemen for paddy, maize and vegetables. It will not benefit farmers, traders and consumers as the highest profit is earned by this third party or middlemen. If we don’t attack this mafia, it would be difficult to control the prices of food commodities in the local market. That is why we decided to take over rice stores which have hoarded rice.
Q: Is there any issue of providing organic fertiliser to farmers?
A: There is no issue with regard to organic fertiliser. We have made arrangements to provide all required amounts of organic and imported fertiliser to the farmers for the forthcoming Maha season. There will be sufficient stocks of fertiliser stocks at Agrarian Services Centres and open market from October 1. Most of those who stage protests demanding fertiliser are not genuine farmers. During the last harvesting season also, they said that there was no fertiliser. Then I inspected the fertiliser stores and seized all those hidden fertiliser stocks. There is a mafia created by unscrupulous traders with regard to sugar, rice and fertiliser. That is why we had to declare Emergency regulations to deal with errant traders.
Q: Despite the approval given by the Cabinet to all the recommendations made by the Cabinet Sub Committee appointed to sort out the teachers’ and Principals’ salary anomalies, teachers’ and principals’ trade unions continue their strike. Would you like to elaborate your views?
A: If schools re-open tomorrow, most of the teachers will come to teach in schools. The JVP and Ceylon Teachers’ Union Secretary Joseph Stalin will not be able to fulfill their petty objectives. The majority of teachers are ready to report to their work. This is a politically motivated campaign launched by the JVP and some other factions and not a trade union action.
Q: Finance Minister Basil Rajapaksa told Parliament on Tuesday that the gap between Government expenditure and revenue has widened and the Government has lost Rs.1500-1600 billion due to the pandemic. What are the measures taken by the Government to address the situation?
A: That is true. There is an issue on the Government’s expenditure and the revenue. The Government’s expenditure has increased due to the vaccination and other expenses in the health sector. The Government has spent a huge amount of money to control the Covid-19 pandemic in the country. However, the Government is trying its best to manage the economy and move forward.
Q: How do you view the success of the Government’s vaccination drive?
A: The first dose of the vaccines has been given to almost close to the full percent of the eligible groups. The second dose has also been given to nearly 50 percent of the people. Our intention is to provide both doses of the vaccines to all those who are between the ages of 30 years and above by the end of this month. We will also complete the vaccination of those who are at the age of 20 years and above by the end of December. Then, our target is to provide vaccines to schoolchildren above 12 years.
Q: The Opposition attempts to portray that the Government has become unsuccessful and failed to meet the expectations of the people. Your views?
A: The Opposition has entirely collapsed during the past one and a half years. If they want to capture power, we would like to ask them who they are going to bring back to power. Is that Ranil Wickremesinghe or Sajith Premadasa? We have not forgotten what happened to the country during the tenure of the Yahapalana Government from 2015 to 2019.
The people are not ignorant to bring them back to power. It is true that the people have an issue as some of their expectations have been shattered due to the pandemic.
Because we have not been able to provide them with employment and address some of their other issues as planned. However, all these issues will be sorted out next year.