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Rice producers oppose release of 1 mn kilos at Port 

19 Oct 2022

  • Claim drop in prices and release of expired stocks
  • Write to Prez to halt imports and re-impose Rs. 50 tax
BY Buwanajee Coralage The United Rice Producers’ Association (URPA) claimed that the release of 1 million kg of rice held at the Colombo Port will lead to a sharp drop in the rice prices, and that the rice market may even collapse, with it running at a surplus currently. Speaking to The Morning yesterday (18), URPA President Muditha Perera said that with the current surplus in rice stocks in the country, the release of the rice that had accumulated at the port over a long period of time would lead to a severe depreciation in rice prices, thus negatively affecting the industry. “The unnecessary import of rice into the country at extremely low tax rates at a time when there is a high surplus of rice in the market would lead to the depreciation in the value of rice. With the release of rice stocks from the ports, this situation could be worsened. We have written to President Ranil Wickremesinghe to halt the importation of rice and to pave the way for the local industry to raise its head by maintaining prices,” he said. Furthermore, he highlighted that the rice released from the ports would not be suitable for human consumption, owing to the fact that it would be long past the expiry date. He suggested that these stocks would only be suitable for animal feed, but noted the lack of transparency in the manner that these stocks of rice were released to the market. He added that due to the import of rice, local farmers and bidders are facing difficulty in maintaining their sales, and pointed out that if these import measures continue, farmers might move away from their livelihoods, in turn posing a serious threat to the food security of the country. He emphasised how, with the reduction of the import tax imposed on a kilogram of rice from Rs. 50 to 25 cents, the imported rice could be sold at Rs. 105 per kg, which the local industry can never match with the increasing prices of hardware and fertilisers. Perera called on the authorities to revoke the tax reduction and impose the tax of Rs. 50 per kg on imported rice in order to revitalise the sector and to save the paddy farmers from moving away from farming at losses. Speaking of the future Maha season crop yield, he pointed out that all the resources needed for a perfect yield are already present, with 70% of the reservoirs filled.  


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