Rice prices are expected to drop during the anticipated shortage later this year and early next year given the Government’s moves to tackle the rice mafia, according to Deputy Minister of Agriculture and Livestock Namal Karunaratne.

“The rice mafia becomes active from October to January, which is when shortages occur. That is when the State must intervene to protect consumers,” he said, revealing that rice stocks were being strategically held to counteract price hikes during this period. 

Outlining Government plans to prevent price manipulation and protect both farmers and consumers, he said: “During this period, we will sell rice lower than the Maximum Retail Price (MRP), ensuring competitors cannot raise prices above the MRP.”

In response to a question raised by The Sunday Morning on why prices remained high in the market despite recent imports and the ongoing harvest, Karunaratne cautioned that further rice price reductions would require cutting paddy prices, which could harm farmers. 

“We have already increased the price of paddy from Rs. 105 to Rs. 120. Lowering rice prices further will come at the cost of farmer welfare,” he explained. 

Karunaratne also noted that despite regulations, some vendors were selling rice above the market price. 

“Rice that should be sold at Rs. 230 was sold at Rs. 240-250 in some places. The Consumer Affairs Authority (CAA) has caught these traders, but they continue to sell in secret,” he said, warning that enforcement measures would persist.

The Government has also introduced a policy ensuring farmers receive a 30% profit: “For nadu paddy, the production cost is Rs. 91 per kg and it will be sold at Rs. 120. Farmers of red paddy benefit even more, as their cost is Rs. 76 per kg, but they will sell at Rs. 120, ensuring a solid Rs. 40+ profit. This has been achieved for the first time in history.”