Sri Lanka lifts price controls on chicken meat

ECONOMYNEXT – Sri Lanka has lifted price controls on chicken amid rising feed prices in an improvement of economic policy that can make poultry a less risky business for farmers who suffer from frequent state interventions.

Sri Lanka’s Consumer Affairs Authority, which creates shortages in a range of goods including tinned fish, dhal, sugar, milk cooking gas and cement has lifted price controls on chicken meat from November 03.

In March 2020 the CAA ordered price controls of 430 rupees per kilogram for broiler chicken with skin and 500 rupees for broiler chicken without skin.

However prices in the open market have been higher in recent weeks.

Farmers have complained that feed prices have risen amid a global commodity bubble, while forex shortages from money printing have also disrupted supplies.

Sri Lanka has in the past slapped import duties to keep maize prices up partly due to pressure from rent-seeking collectors who have political clout (a so-called maize mafia) as well as price controls, squeezing them from both ends.

Sri Lanka has printed unprecedented volumes of money since February 2020 leading to a fall in the rupee and forex shortages, pushing up prices of most goods. (Colombo/Nov04/2021)

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