• Seeks concessions on fuel, electricity, and material 
• Notes shortages and supply chain disruptions
• Food Processing Association submits proposals to Industry Ministry

The Food Processing Association (FPA) warned yesterday (20) that the retail prices of processed foods will soon reach unbearable levels for consumers, and that the room for any discounts for the consumer market will grow less, if the Government is unable to grant the concessions that the industry has requested from the Industry Ministry.When contacted by The Daily Morning, President of the Association, Aruna Senanayaka said the industry is experiencing a shortage of materials, including ingredients and packaging materials, along with disruptions to supply chains amid surging electricity bills and fuel hikes. He said that if these matters are not addressed, the retail prices of food items will become unbearably high.

He added the Association has submitted proposals to the Ministry to help tackle the situation. “We have asked for a concession on fuel for the industry, a deduction of tariffs on electricity bills considering the capacity of the industry, and also a concession for the materials,” he said. He further noted that the industry is facing multiple issues related to materials. “The supply chains have become disrupted; hence, we are already seeing a shortage of materials. There are some materials which are byproducts of petroleum, which has made the situation even worse,” he explained.

“Take a material that is used to make three-layer packaging. If one of the materials that is used for this one layer is facing a shortfall, that affects the whole process for that particular food item. Hence, we have requested the Ministry to look into this matter as well and provide us with a concession to tackle this scenario,” he added. According to him, manufacturing costs, storage costs, packaging prices, and material costs are all rising, and the increase in cost per unit is being caused by the recent fuel and electricity hikes.

The Ministry had previously assisted the industry in similar situations, he said. “For instance, amidst the fuel crisis, they helped us to have fuel for our industry without an issue. Hence, we are hopeful that they would address our issues in this scenario too.”

While the Government has already imposed a hike on electricity tariffs for factories using more than 180 units, President Anura Kumara Dissanayake has recently cautioned of a further fuel price hike in the near future.