Food importers warn 10-20% price rise ahead of festive season, assure no shortages

ESSENTIAL food importers have sought to calm fears of shortages ahead of the Sinhala and Tamil New Year, while cautioning that consumers should expect price increases of between 10-20% as higher fuel, freight, and insurance costs filter through the supply chain.

- CHARUMINI DE SILVA

"The country would have uninterrupted supplies of staple goods despite mounting geopolitical risks in the Middle East," Essential Food Commodities Importers and Traders Association (EFCITA) President G. Vinayagasundaram told the Daily FT.

"We had a meeting with the Trade Minister [yesterday] morning and there is no shortage of essential food commodities," he said, following discussions with the Ministry yesterday.

With Sri Lanka being a net importer of essential foods and fuel, the Association said the combined impact of higher bunker fuel prices, surging war risk premiums, and a weakening rupee has lifted landed costs across a range of staples.

"We estimate that retail prices could rise by 10-20% in the coming weeks," he said.