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100K MT of rice to be imported: Blame game between Government and farmers

26 Jun 2021

  • Measure to control rising rice prices: Government

  • Rice millers, traders blamed for artificial shortage 

  • International competitive bidding tenders called 

  • Stocks sufficient for 2022; Yala harvest to come: Farmers 

 By Yumiko Perera Following the cabinet decision to approve the proposal made by Trade Minister Bandula Gunawardana to import 100,000 MT of rice, the Minister stated that the Government intends to use this measure to control the increasing prices of rice in the domestic market that are the result of the actions of rice millers and traders.  Stating that rice millers continue to maintain artificially inflated prices, thereby creating an artificial rice shortage, and conceal paddy stocks and rice to be sold at a higher price, despite having sufficient stocks of rice at hand, Gunawardana claimed that the Government had opted to make this move in order to lessen the burden on the people.  Speaking with The Sunday Morning, Gunawardana said: “The price of rice has increased, and it is not something the people of this country can handle. We plan on taking very strong action in this regard.”  As per Gunawardana, the Government has called for international tenders to import 100,000 MT of rice in accordance with an international competitive bidding system, and he further added that 50,000 MT of nadu rice and 50,000 MT of samba rice are expected to be imported soon.  Replying to The Sunday Morning's query on how much the Government would spend on the importation of rice, Minister Gunawardana pointed out that an estimate has not been made yet. "This is a question about feeding the people of our country, so the Government will take care of it."  However, according to All-Ceylon Farmers Federation National Organiser Namal Karunaratne, Sri Lanka has more than sufficient stocks to fulfil the rice requirement at present. The only problem is that the Government has failed to tackle the problem of middlemen benefitting at the expense of the hard work and labour of farmers, he stated.   Speaking with The Sunday Morning, Karunaratne said: “Sri Lanka has sufficient rice stocks, so I don't see as to why there is a need to import rice. Likewise, the people also don’t have to pay a ridiculous amount for rice. The Government used to purchase paddy from the farmers for around Rs. 40 to Rs. 50 per kilogramme. The Government also accepts the fact that there are sufficient rice stocks in the country, more than enough for us to get by. However, large-scale rice mill owners sell rice with a huge profit margin, and the Government has not been able to put a stop to that.”  As per Karunaratne, even if Sri Lanka does not import a single grain of rice ahead of the Yala season, the country would have enough rice stocks which would suffice for the upcoming year as well.  “The country has nearly 1,729,000 MT of rice stocks for now, and that is without considering the harvest for the upcoming Yala season. When we have that amount of rice within the country, why is the Government hellbent on importing more rice?” Karunaratne queried.  Furthermore, highlighting that the Government should come up with a proper mechanism to control the prices by bringing in better regulatory measures, Karunaratne compared the Government's decision of importing rice as being akin to changing pillows to get rid of a headache.  Several attempts made by The Sunday Morning to contact Agriculture Minister Mahindananda Aluthgamage for insight proved futile.   


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