Minister of Industry and Commerce Rishard Bathiudeen made a statement Friday, that the shortage of rice which existed is no more as the imports have now been transported to retail and wholesale outlets, and the new maximum retail prices of rice were gazetted just yesterday.
In a statement issued yesterday, Minister Bathiudeen stated, “More imports are arriving and the rice crisis is over. Still, consumers are requested to call our hotline 1977 to complain any errant rice sales anywhere in Sri Lanka. 250 officers of CAA are monitoring the shops across the country.”
Towards the end of the previous year, Minister of Finance Ravi Karunanayake said, in order to face a rice shortage owing to the effect of the drought, the private sector will be allowed to import rice, while the government provided them with bonded warehouses.
Intermediary subjects
Speaking at a gathering in Dompe, addressing fishermen, farmers, businessmen and government officials in the area, he assured that the government will introduce a maximum retail price for rice to ensure that people are ultimately benefited by the actions and decisions taken by the government, and that intermediary subjects do not leech on the tax concessions given by the government.
Speaking further at the event, he said, “The government has initiated a scheme to bring about a solution to the issues that have cropped up because of traders who tried to hide rice stocks, but once we introduced a maximum retail price for the imported rice we were able to grant some relief to the public. It is important that we manage and expand our networks so that a handful is not able to control the market. This is a man-made issue. Therefore, I reiterate that we, as the government will stand with the people and ensure that everything possible is done for the benefit of the people.” Minister Karunanayake said. Earlier this year, reacting to a request placed by the President, Indonesia said it will donate 10,000 metric tons of rice to Sri Lanka in order to maintain the buffer stock.
With the importing of rice, Lanka Sathosa was fed in the stocks so that people were able to buy at the controlled prices of maximum retail price of a kilo of Nadu rice at Rs 72, a kilo of Raw rice at Rs 70, and a kilo of Samba (excluding Keeri Samba and Suduru Samba) at Rs 80. Mostly, the rice shortage was attributed to the severe weather conditions. Irregular rains and long dry spells in between contributed mainly to the drought condition and damaged crops partially and completely, which amounted to a reduction of crops in half, said, Dr. B Punyawardena, climatologist at Sri Lanka’s Department of Agriculture.
Speaking to the Sunday Observer, Chairman, Paddy Marketing Board, M B Dissanayake said, stocks have been issued to the millers and there is no reason why a shortage should continue. Speaking further he said:
“We have already issued most of our stocks to the millers around the country and we expect it to arrive in the markets in the following few days. Alternatively, 690,000 metric tons of rice has been imported by now and it is expected that a further 250,000 metric tons of rice will be imported. Hence, the issue has been properly addressed and settled.
And, the paddy of the Maha season will be harvested in the near future, while in the Ampara, Batticaloa and Polonnaruwa districts harvesting has already begun.”
However, some reports indicate that according to statistics of the Agricultural Ministry locally manufactured rice and imported rice during the previous year and the remainder, would have been sufficient to comfortably avoid any shortage.
According to statistics issued by the Ministry of Agriculture, the estimated excess rice is about 443,000 kg. while the 2017 estimated demand would be around 96,019 metric tons. When asked, the Secretary to the Ministry of Agriculture on the issue said, although statistics may reveal of such stocks due to various reasons the stocks have not reached the market.
Speaking further he said; “Although statistics may show that there is sufficient production within the country, the millers tend to hoard stocks. They are now converting those stocks into rice. A larger portion of the paddy is usually bought by private millers and the Paddy Marketing Board buys only a relatively smaller portion. Their practice is to keep the stocks for a longer term as their motive is profit. And once the demand is created they can easily increase the prices according to supply and demand principles. Hence, we have said very strongly that enough quantities are available within the country but the government needs to intervene and ensure that private millers are not allowed to control rice prices in the country.”
Errant sellers
This year under the Maha season 400,000 hectares have been cultivated, and if it is assumed that 4,000 kg of paddy can be generated per one hectare 1.6 million Kgs of paddy could be expected to be harvested at the end of the Maha season.
However, by yesterday, the Consumer Affairs Authority (CAA) in a Gazette notification issued revised maximum retail prices for rice, separately for local and imported rice, to take immediate effect.
“The locally milled rice has not been included in our 8 February MRP order. We have now included local rice as well, so that our millers can now get a fair price. I also warn errant sellers who violate the MRPs” said Minister of Industry and Commerce Rishad Bathiudeen,as stated in a press communiqué. Accordingly, the new prices of rice per kilo is: imported Nadu rice is Rs 72, locally milled Nadu Rs 80, a kilo of imported Raw (Kekulu) rice is Rs 70 locally milled Raw Rs 78, and a kilo of imported Samba (excluding Keeri Samba and Suduru Samba) is Rs 80 and locally milled Samba (excluding Keeri Samba and Suduru Samba) is Rs 90 per kilo.