(LANKAPUVATH | COLOMBO) – Food security has been a challenging topic faced by many nations, both developed and developing alike around the globe. With many experts predicting that Food to be one of the main commodities that would run scarce within the next couple of years, it has evidently become more important that countries support and nurture domestic manufacturers and suppliers, so that in an event of emergency that one would not have to depend on any foreign parties.
However, the authorities seem to be slightly misguided on this endeavour and has fallen prey to the Turkish dumping flour mafia which many countries starting from Argentina to Philippines has fought so valiantly against. It is learnt through trusted sources that authorities may allow the importation of such dumped Turkish flour into the country irrespective of the countless allegations against the same.
Since 2001, upon the liberalisation of the flour industry, Local flour millers have competed against imported flour. Consumers have time after time, trusted these brands and purchased them for the quality and price they provided.
However dumped flour totally violates this concept. The very term “Dumped” means when flour is exported by one country at a price substantially lesser than what it is sold at the domestic market of the country that it originates from. Turkey is a classic example and for years they have been dumping flour violating numerous WTO principles and with increased fertiliser costs in Turkey, the U.S Wheat Associates has repeatedly questioned the quality of this flour.
Furthermore, since of the unusual price drops, very specifically with developing countries with no substantial trade control, these Turkish exporters squash the domestic suppliers and eventually create a monopoly and take complete control of the flour market.
However the facts presented at the time showcases that despite the numerous warnings against the same, the decision to import said Dumped flour has not been revoked. This questions the future of the Local Flour Millers, the security of the investments they have made in good faith as well as sends an overall adverse message to any Investors who is considering Sri Lanka to be a potential destination for investment, that the policies of the country are subject to severe fluctuations creating further uncertainties.
Despite the politics that surround the same, Food security is a serious topic and surely should not be governed by egoistic politicians who seem to be taking decisions purely for their own political gain. Despite countries such as Chile increasing anti-dumping tariffs from 16.9%, Sri Lanka seems to embrace and welcome the devil to its own backyard. In the interest of Local Flour Millers and Investors who have placed their confidence in Sri Lanka in general, it is our only hope that decisions of this nature are made only after thorough analysis and evaluation of both, short and long term consequences of such actions and policy changes. Let us rally around to protect what is ours!
