CAA takes measures to specify 10 more items as essential

The Consumer Affairs Authority has taken steps to specify 10 more items as essential items in terms of Section 18 of the Consumer Affairs Act No. 9 of 2003.

The essential items identified and gazetted as essential items are White Sugar, Dried Chilies, Big Onions, Red Onions, Dhal, Dried Sprats, Gram, Green Moong, Canned Fish and Chicken.

Why were these items identified and what is the process and mechanism by which the consumer will be given quality consumer items for a reasonable price and also consequen to the health factor and the other circumstances.

It is now known that the concept of price control is a part of history. We embrace the open economy in 1977 and thereafter the price control economy was based on the government policy and the open economy. in an open economy structure there is no rule for a price control mechanism.

But to look after the droller and the needy in the society there is a mechanism to identify items which are essential for day to day life and to give certain conceptions by setting indirect control.

This is demonstrated in 2 of the Act in detail, by giving power to regulate trade and also implement the intention of the legislation by the Authority headed by the Chairman who exercises to held functions.

The other items already specified as essential items are Gas, Milk Powder, Wheat Flour and Cement. The Minister of Trade, Consumer Services, Marketing Development and Co-operatives Bandula Gunawardana has initiated an innovative mechanism by invoking Section 14 of the Consumer Affairs Act, in order to enter into a friendly agreement with the traders, specially the wholesale traders who agreed to assist the society in formulating a new business culture.

In the past the business community and the traders were not considered friends of society. Our concept is that, there are a part and practical of the society and a part that is needed for the society and the part that will serve the society.

While performing the function as professionals it is very interesting and happy to note that we have understood it and choosed to work with the CAA. At the same time the Minister had a number of discussions with President Mahinda Rajapaksa and the Cabinet Members who appointed a Sub Committee on the Cost of Living.

While the Minister was performing a political and consumer friendly act, the CAA in the capacity of a regulator and the advisor to the Minister has done all the background work in drafting and formulating the unpredicted agreed which was implemented since the inception of the introduction of the open economy in 1977.

On the other hand it is only after 30 years of the open economy that we have taken this initiative and innovative step which has produced good results.

According to the agreement the traders have agreed on a maximum price scale for wholesale prices namely:-

Sugar 50.00
Big Onions 41.50
Potatoes 51.00
Dried Chilies 140.00
Red Split Lentils 75.00
Red Onion 42.00
Sprats 135.00
Chicken 260.00

Section 14 of the Act

(1) The Authority may enter into such written agreements as it may deem necessary, with any manufacturer or trader or with any association of manufacturers or traders to provide for -

(a) The maximum price above which any goods shall not be sold;

(b) The standards and specification of any goods manufactured, sold or offered for sale;

(c) Any other conditions as to the manufacture, import, supply, storage, distribution, transportation, marketing, labelling or sale of any goods.

(2) Every written agreement entered into under subsection (1) between the Authority and any manufacturer or trader or with any association of manufacturer or trader or with any association of manufacturers or traders, shall be binding on every authorized distributor of such manufacturer or trader and every member of such association. As though he was a part to such agreement and whether or not he was a member at the time of entering into the agreement.

(3) Every manufacturer or trader or any authorized distribution of such manufacturer or trader or any association of manufacturers or traders or any member thereof. Who contravenes any provision of any agreement entered into with the Authority under subsection (1), shall be guilty of an offence under this Act.

(4) Every agreement entered into with the Authority under subsection (1), shall be registered with the Authority and shall contain a schedule giving the name and description of each authorized distributor of such manufacturer ro trader or members of such association, as the case may be.

(5) Every agreement entered into with the Authority under subsection (1), shall come into force from the date of such agreement, unless such agreement provides that the agreement shall come into force on any subsequent date.

(6) Where the Authority thinks fit, it may cause any agreement made under this section to be published in the Gazette. Where an agreement is published in the Gazette, the production of a copy of Gazette in which such agreement is published shall, until the contrary is proved, be proof of the contents of such agreement.

(7) For the purpose of any prosecution under this section, a certificate given by the Authority that any person is an authorized distribution of any manufacturer or trader or is a member of any association of traders or manufacturers shall be admissible and be prima facie.

In a Court of Law that such person is authorised, distributor of such manufacturer or a trader or a member of such an association.

For example sugar, the price agreed with the CAA is Rs. 50 where at many wholesale traders it is been sold at a lesser price due to competition. What has happened here is we have specified the maximum price where the wholesaler cannot sell it beyond the maximum price. This innovative mechanism introduced by the Authority with the help of other Government institutions has brought down the prices drastically.

Our mandate is to pave the way for the consumers to get their food items at a reasonable price and it is our duty to differentiate the two different functions, namely the ministerial duty - the duty of the government, the duty of the respective government body and the CAA which act as a regulator and also semi di... functions where it is bound to act based on natural justice.

It is the duty of the CAA to listen to all the parties and inquire, into the grievances of the trader fully and properly and to give decisions based on natural justice. Otherwise, they can redress on the board.

The other important aspect is the balancing exercise of this process and to help the consumers. It is true that the primary concern of the CAA is to help and protect the consumers.

It stays that the CAA should provide better protection of the consumer through the regulation of trade and the prices of goods and services and to protect traders and manufacturers against unfair trade practices and respective trade practices.

It also states that the Government desires to promote competitive prices in where ever possible and ensure healthy competition among traders and manufacturers of goods and services.

Our aim is to train and to produce just traders. Traders who are professional traders who are not selfish traders, who will earn their living by not exploiting the consumer. On the other hand we want effective alert consumers. Consumers must be well organised and they should know their rights and duties.

Consumers in other parts of the world are powerful. the saying that the consumers does know wrong and that the consumer is the king is a reality, but sadly not in this country. But now we are reaching the target of educating our consumers. We have a target to establish consumer organisations in every village so that we share powers with them.

And we work together. How do we work together. The consumer organisation...... is not another political organisation. It is a very friendly innocent organisation. They should learn and educate their problems and use it as a vehicle to present their case to the public and to the CAA for the implementation of the regulations.

This has been proved in other parts of the world. We the CAA is ready to face any challenge now. We are self sufficient though we have a lack of resources. We believe in serving the people with the available raw materials.

We need more money, we need more man power but we do not use it as an excuse. We can work very well if the consumers are with us. The consumers must not leave everything along to the CAA and the Government. They have a job to do. They have a duty to educate.

They should educate themselves and perform thier civic duties to the society by organising themselves in line with other consumer organisations in the world.

In other parts of the world the consumer has shown his strength by organising, agitating, canvasing and by way of consumer activism for the betterment of many.

Now that the consumers are being organised and the traders are becoming just traders and the CAA has activated the relevant legislation with the help and directions of the Minister, a joint effort is required to win the war against the Cost of Living.

The prices are being slashed drastically. The next step is the implementation of Section 18 to the last word in which the trader is bound to obtain permission from the CAA for any price increment of essential items. Lastly, please inform the CAA and the network of officers all over the country, if the traders do not exhibit the price list which is a statutory requirement. Please contact us on telephone, e-mail, fax, text or on the hotline.

Tele (Gen): 2445897, 2393577, 2393495
Tele: 2399146
Fax: 2399148
E-mail: sarathw@aol.com
Office: chairmancaa@sltnet.lk

Maximum retail price of broiler chicken fixed at Rs. 260

The Consumer Affairs Authority has informed that, according to the agreement entered into with the All Island Association of Chicken Meat Producers in terms of the Section 14 of the Consumer Affairs Authority Act No. 09 of 2003, the maximum retail price of broiler chicken meat produced in Sri Lanka has been fixed at Rs. 260.

Awareness Programmes

The CAA has conducted awareness Programmes to educate traders in Mawanella, Kegalle, Hatton, Nuwara Eliya and Pettah.

The CAA also held a seminar for traders at Maharagama on April 4.