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Rice importers request demurrage waiver

16 Jan 2022

  • Says concession needed to maintain wholesale price between Rs. 105-120 
By Imesh Ranasinghe   Rice importers are requesting the Trade Ministry to waive off demurrages for containers stuck at port to maintain the wholesale price of imported nadu and samba at Rs. 105 and Rs. 120 per kg, respectively. Speaking to The Sunday Morning Business, Essential Food Commodities Importers and Traders Association Spokesperson Nihal Senevirathne said that about 20,000 MT of imported rice had been stuck at the ports for the past 10 days in 800 containers. A meeting was held at the Trade Ministry last Wednesday (12) with the rice importers, where the Ministry has requested the importers to keep the whole price of imported rice at a fixed price to counter the increasing prices of rice in the market. “They wanted us to keep the prices low, so what we told them was, in order to keep the prices low, waive off the demurrage payments on the 800 containers of rice; then we can give it at low prices,” Senevirathne said.  In November 2021, the Finance Ministry announced that the Special Commodity Levy on imported samba, nadu and raw rice has been reduced from Rs. 65 per kilogramme to 25 cents, valid for six months, after which importers rushed to import rice. According to Senevirathne, Sri Lanka has imported between 100,000 to 150,000 MT of rice since the waiving off of the levy, which has contributed to controlling rice prices to some extent in the local market. “Because we imported rice, the prices were maintained at the current rate, otherwise the price of one kg of rice would have gone up to Rs. 400-500,” he noted. Sri Lanka mainly imports samba, nadu and raw rice from India, Pakistan, Thailand, and Vietnam. The country is experiencing a severe food crisis due to the improper planning in switching to 100% use of carbonic fertiliser, with the Government still undecided on the way forward in this regard. Due to the foreign exchange crisis the country is facing, banks are not able to release dollars as soon the shipments come to Sri Lanka, which results in the containers being subjected to demurrage. Ministry of Ports and Shipping Secretary Chandana Jayalal told The Sunday Morning Business that the Sri Lanka Ports Authority (SLPA) Act had not provided powers to waive off demurrages as a whole. He noted that individual businesses could appeal to the Demurrage Committee at the SLPA, after which the demurrage waiver could be granted in light of considering the facts. He added that according to the Act, demurrages of individuals should be waived in a manner that would minimise the loss to the SLPA. “We cannot make decisions as a whole, how will the ports then be managed?” he asked. Moreover, Jayalal said in the recent months individual businesses had appealed to the committee and received waivers of demurrages successfully. “We request the importers to come forward with such appeals, following which a fair decision will be given by the council,” he said.


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