• Prices expected to soar to Rs. 300 per kilo

Sri Lanka’s rice industry is in crisis, with 75% of small- and medium-scale rice mills being forced to shut down due to the ongoing paddy shortage. 

All Ceylon Small- and Medium-Scale Rice Mill Owners’ Association President B.K. Ranjith revealed that many of these mills had not had access to paddy for the past three weeks, with no sign of resolution despite multiple attempts to contact paddy sellers and relevant authorities.

“We’ve had to shut down our operations because there’s no point in opening mills without paddy,” Ranjith said, stressing that the closure of these mills was putting thousands out of work and aggravating the already strained rice market.

According to him, the ongoing shortage could push the price of white and red kekulu rice up to Rs. 300 per kilo, a significant jump from current prices.

The shortage is being worsened by the prevailing rainy weather, which has hindered the paddy harvest, further disrupting supply. 

Ranjith described a situation where sellers were offering bags of paddy only to withdraw their offers later. 

“We’re ready to buy a 64 kg bag at Rs. 10,000, but they back out at the last minute. This is the reality we’re facing,” he explained.

The paddy crisis has led to rising rice prices. According to recent data from the Central Bank of Sri Lanka (CBSL), the price of white kekulu rice has risen to Rs. 250 per kilo at retail level, up from Rs. 218 at wholesale level. 

Samba rice has remained stable at Rs. 230 per kilo, while nadu rice has seen a slight price increase. Imported rice varieties like ponni samba are also experiencing price hikes, although not as steep.

Supermarkets in Colombo are already feeling the effects of the shortage, with reports indicating that shelves are nearly empty of rice, except for limited stocks of keeri samba. 

This has sparked widespread concern among consumers as the festive season approaches.

In response to the crisis, Deputy Minister of Agriculture and Livestock Namal Karunaratne confirmed that the Government would begin importing rice to meet the shortage.

Karunaratne explained that there was no alternative but to import rice to prevent further market instability.

“We have no choice but to import rice to address the shortage. The Government is also working on new laws to regulate large-scale mill owners and prevent the concentration of rice in the hands of a few,” Karunaratne said, adding that rice was a national asset that should be available to all, not just a select few.

Meanwhile, Lanka Sathosa began calling tenders for rice imports from Friday (29 November). 

Lanka Sathosa Chairman Dr. Samitha Perera stated that 70,000 MT of rice would be imported in phases, with the first shipments expected to reach the market before the upcoming festive season.