• Claim they purchase at Rs. 230/kg so selling at control prices ‘unsustainable’

The All Ceylon Essential Food Wholesale and Retail Trade Association warned that its members may be forced to cease selling rice if the authorities fail to create a favourable environment for traders to operate under the proposed control price of Rs. 220 per kilogramme (kg). 

Addressing a meeting of wholesale and retail traders in Kandy, the President of the Association W.M. Najeem expressed concern over the current market conditions. According to Najeem, traders are unable to obtain rice at a price that allows them to sell it at the Government imposed control price. He highlighted that traders are currently purchasing rice at around Rs. 230 per kg, making it impossible to sell at the control price without incurring losses. “Selling rice at Rs. 220 is simply not viable when we are purchasing it at Rs. 230. This price structure is unsustainable,” he said. He explained that even though some traders attempt to sell rice at Rs. 235 or Rs. 240 per kg to cover costs, they risk being penalised by the Consumer Affairs Authority (CAA) for violating the control price regulations. 

He further stated that the situation leaves traders in a difficult position. “If we sell above the control price, we are raided by the CAA, and if we follow the control price, we face financial losses. On the other hand, the public accuses us of being part of a black market mafia. If this issue is not resolved, we will be left with no choice but to withdraw from selling rice altogether,” Najeem warned.

Hence, the Association called on the authorities to address these concerns by ensuring that rice is made available to traders at prices that align with the Government’s control prices, in order to maintain a fair and profitable market for all parties involved.