‘’EGG MAFIA IN SRI LANKA’’
Posted on January 2nd, 2023

Sarath Wijesinghe President’s Counsel, former Ambassador to UAE and Israel, Former Chairman Consumer Affairs Authority and President Ambassador’s Forum (Sarath7@hotmail.co.uk)

Egg

Egg is an essential part of the Sri Lankan diet as it is affordable and freely available when the prices of meat and fish is exorbitant. Citizen is going through the most difficult era with 72% inflation ever rising currently the 7th position in the world. It is the requirement of the governance via the main regulatory instrument act no 9 of 2003 by the name Consumer Affairs Authority with 77 sections within with intentions stating in the preamble that ’’Whereas it is the policy of the government of Sri Lanka to provide for the better protection of the consumers through the regulation of trade and the prize of goods and services and to protect traders and manufactures against unfair trade practices and restrictive trade practices.’’ Egg is the talk of the town with accusations to many on the fast rising of eggs skyrocketing the cost of living of the consumer at the mercy of the trader, manufacturer, regulator and according to news reports the emerging ‘’Mafia’’ on eggs. Going back to the definition Mafia is a criminal gang flourishing in other parts of the world on Drugs, Gambling and many kinds of illegal activities by international gangsters’ powerful even overriding and overstepping governments and international police network. Prize of egg as in the case of other consumer items are rising rapidly with no control from the CAA despite the prizing under section 18 of the CAA act empowering the line Minister and the CAA to decide on prizes of selected items that are necessary for the citizen under circumstances based on a research by the CAA to act upon unfortunate overlooked by the trader leaving governance and CAA helpless allowing the prize of eggs to float freely giving the trader a free hand to decide the prizes of eggs. It seems egg has become a barometer on the strength and applicability of the governance and the main regulator on the cost of living of the citizen taking egg as a barometer in the prizing and cost of living index showing the incompetence and the weakness of the application of the act no 9 of 2003 which is the only legislation available with no changes since 2003. Whether it is the incompetency of the governance or defects of the legislation than any way needs reforms is a matter for a public debate expecting for a long time. Who is in a position to give some relief to the suffering masses is uncertain as nobody takes the responsibility and do not seem to be powerful to bring down the prize of many consumer items including eggs, with a monopoly of the egg prodder’s people say are powerful politically and otherwise. There is news that the head of the egg mafia is the brother in law of a minister between two ministers on trade and agriculture moth of whom are not taken serious in any respect. Both are living on politics with humble beginnings now no longer in need of wealth.

Competition and Competition Law

Ironically the Preamble states that it is the duty of the government to protect traders and manufacturers against unfair trade practices and restrictive trade practices. At the same time the Government is Sri Lanka is also desirous of promoting competitive prising wherever possible and ensure healthy competition among traders and manufactures of goods and service. Competition and competitive trade is the basis of modern trade and academics give specie attention on the competitive law and practical application world over. Main functions of the Consumer Affairs Council (s39) is to stream line anti-competitive practices based on section 41 of CAA Council being satisfied that an anti-competitive practice exists but such anti-competitive practice does not operate or is nt likely to operate against public interest by order made in that behalf authorise such anti-competitive practice or (b) an anti-competitive practice exists and that it operates against public interest by order in that behalf provide for (1) the termination of such anti-competitive practice in such manner as may be specified in that order and (2) such other actions as the  Council may consider necessary for the purpose of remedying or preventing the adverse effects of any anti-competitive practice are the safeguards provided to protect the consumer and trader from cartel mafia exist world over including Sri Lanka in trade including egg trade now completely out of control in the hands of the mafia. This is the law and practice and the solution is in the hands of the governance and the line Misters in power frequently on media.

Powers of CAA

What other powers have the CAA and the governance to provide relief to the grieved consumer currently purchasing eggs at any price sole by the trader as a part of the mafia. Under regulation of trade in Part two Section9 the Authority may undertake such studies in respect of the sale or supply of  any class of goods and services as would ensure the availability to the consumer of such goods and services of satisfactory quality at reasonable prices and adequate quantities. (b) to promote assist and encourage the state of other organizations of consumers for the purposes describe  in paragraph (a) and (c) assist encourage associations of traders to enter into agreements with the authority of  for the purpose described in section14. (Agreement to provide for maximum prize and of goods. Other provisions such as hording of goods, are of no relevance due to the severe shortage of eggs and the monopoly on price and distribution.

Other avenues and way out

There are no further avenues or ways to give relief the consumer showing the nature of the legislation which is powerless with no teach to take steps for relief to the citizen apart from a direct political solution outside the ambit of the CAA act which unfortunate powerless and unable to give any further relief to the citizen and it is timely to amend or introduce new legislation suited for the country. Author could be contacted on sarath7@hotmail.co.uk/sarathdw28@gmail.com

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