Despite a huge 400,000 MT volume of rice supply has been discovered to be available within Sri Lankaโs retail market at this very moment, an unscrupulous play within the system has resulted in a supply crisis, alleged Sri Lankaโs Minister of Industry and Commerce on 20 February in Colombo.
Minister of Industry and Commerce Rishad Bathiudeen also asked not lay blame on the local rice millers for the crisis while hinting that Sri Lanka has not decided on a country from which to import buffer stocks, but โis ready to (place the order) for importโ as well.
Minister Bathiudeen, joined by his top officials was addressing a special press briefing on the countryโs rice supply status at the Government Information Department, Narahenpita on the afternoon of 20 February.
Explaining the presently developing scenario, Minister Bathiudeen said: โWe need 200,000 Mt of rice monthly. The Hector Kobbekaduwa Agrarian Research and Training Institute (HARTI-in Colombo 7) has informed us today 20 February that after they conducted their own investigations, they discovered almost 400,000 MT rice volumes as available across Sri Lankaโs retail market system even at this very moment. In addition, 86000 Mt of rice also have been imported and arrived. We even reduced rice import tax from Rs 75 to Rs 5.ย Therefore there is really no shortages and the crisis is over. Still, there are supply issues in the market. This is due to some form of planned manipulation of rice market by certain interested parties. To overcome, we introduced Maximum Retail Prices (MRPs) for both imported and locally milled riceโ said Minister Bathiudeen and added: โSellers and importers who do not release rice to the consumers or who sell at higher prices are liable. They must display price lists. Imported rice cannot be sold as local rice. In fact, two teams from CAA are specially working on checking up on such switching-a manipulation. Already Consumer Affairs Authority under my Ministry has conducted more than 3000 raids since January 2017 and cases filed on 1200 identified violations from these raids. We also cancelled all leaves of CAA employees to continue with the raids. To resolve the situation, we have also been holding many meetings together with HE President Maithripala Sirisena, along with importers, millers, and distributors etc-HE President alone had five such meetings recently. We also informed the importers to furnish all details of their imports, including purchase costs and arrival dates of rice at Sri Lankan ports. We should not be continuously blaming the local millers alone and should not make them to be solely responsible for this crisis. It is the opportunistic traders and certain others who are behind this crisis due to their exploiting nature. We are ready to import new buffer stocks if necessary. Our countryโs rice buffer stock level is 100,000 Mt. The government is ready to import this amount but is yet to decide as to which country to import from. Some officials of the Department of Commerce under my Ministry who are posted abroad are now sending international wholesale rice prices on a daily basis to us.โ
By Extraordinary Gazette 2006/52 dated 17 February, the CAA under Minister Bathiudeen, gazetted MRPs of three varieties of rice, separately for both imported and locally milled. Accordingly, Samba (non-keeri and non-Suduru) was priced per kilo at Rs 80 for imported and 90 for locally milled, Raw (Kekulu) priced per kilo at Rs 70 for imported and 78 for locally milled, and Nadu priced per kilo at Rs 72 for imported and 80 for locally milled.
Leader of All Ceylon Makkal Congress