Rice MRP at Rs 76!

Maximum retail price of a kilo of rice has been announced at Rs 76 while the government geared for a critical retail battle it did not anticipate.

“The Consumer Affairs Authority will act on errant traders who sell at higher prices” declared Minister of Industry and Commerce Rishad Bathiudeen on 3 February.

Minister Bathiudeen, while addressing the inauguration event of Footwear and Leather Fair 2017 at BMICH on the morning of 3 February said that despite continuously reducing import taxes, there is a market issue of rice sales, reported by media.

Minister Bathiudeen added: “HE President Maithripala Sirisena this morning met me, with Finance Minister Ravi Karunanayake and Minister of Special Assignments Dr. Sarath Amunugama. After discussing the issue, we decided to sell rice at Rs 76 per kilo everywhere. I am sorry to say that even after reducing the import tax to Rs 15 per kilo earlier, retail market price has not declined and thereafter, obeying the importers, we slashed it further to Rs 5! The government could have imported rice but in order to give the private sector importers an opportunity, we did not go ahead with importing and allowed them to import. Importers Association asked us to allow them to import rice at reduced tax and we gave permission. But still they did not implement it and they failed, resulting in this situation. We are also looking at penalising importers who imported but did not release to the retail market. If importers won’t help us, then we the government will go ahead in import rice. We will import through Cooperative Wholesale Establishment (CWE) under my Ministry. The CAA has been instructed monitor errant rice sellers as well. I am pleased to announce that the maximum retail price per kilo has now been decided at Rs 76. I am also pleased to say that rice is now available for sale at Rs 76 per kilo across all outlets of Lanka Sathosa operating under my Ministry.”

The key FMCG institutions of state-the Consumer Affairs Authority, CWE and Lanka Sathosa- operates under Ministry of Industry and Commerce.