The Government extended the temporary lifting of rice import restrictions on Friday, December 20, for private traders to import rice without a licence until January 10. Earlier this month, the Cabinet approved the temporary lifting of rice import restrictions until December 20 due to a rice shortage in the country due to the damage caused to paddy cultivation by the recent floods.
Since the lifting of restrictions, it has been reported that private importers have brought in approximately 36,000 metric tonnes of rice. Last week, the Customs said 9,500 metric tonnes of rice had been imported into the country. Customs spokesman and Director Seevali Arukgoda said the imported stock includes 3,300 metric tonnes of raw rice and 6,200 metric tonnes of Nadu rice. However, the concessionary period to import rice ended at noon on December 20, he said.
The Government also plans to create a buffer stock of rice by tapping into the expertise and resources of the private sector to ensure the efficient and cost-effective development of critical storage facilities.
There was no apparent rice shortage in Pettah yesterday morning despite the festive season’s increasing demand. However, wholesale distributors said the imported rice is yet to arrive.
T.M. Ramachandran, a wholesaler in Pettah’s 5th Cross Street said the shortage will last for only two weeks.
He said, “The small-scale millers cannot face the rice mill oligopoly, which is uncompetitive and unfair. The large mill owners are well aware of the high demand in November and December and jack up prices.”
Sri Lanka is in this situation because successive Governments had ignored price controls.
Ramachandran said the problems worsen down the supply chain, particularly for small traders. “I think the Government should have spoken to all stakeholders in the rice trade, not only the large mill owners. They could have met wholesalers and a few representing small businesses to discuss prices.” He said small businesses face raids for minor price increases while grappling with overhead costs such as transport and storage. “Small shops can’t sell rice today. Their customers don’t want to buy anything else because there is no rice. I sell rice to small shops on credit, and I have Rs. 20 million in unsettled bills in my drawer.”
Ramachandran who caters to clients ranging from big hotels to small shops, said the smaller shops worry more about price while hotels prioritise quality. He said that the rice monopoly is a recent phenomenon, and called for fair trade with competitive prices, free from oligopolies or Government intervention, he added.
Meanwhile, a consumer who bought rice for factory employees said, “There is no shortage. Imported Nadu rice can be bought at Rs. 218 per kilo. I just purchased 2,000 kg to distribute to my employees. Traders say they are fully stocked, and by Monday, things will be back to normal.”
