Over 10,000 Metric Tons (MT) of excess white rice imported from Pakistan by dealers who had obtained bank loans for this purpose has now been kept under storage in Pettah as local white rice is in abundance and selling at a cheaper rate, Dealers told Daily Mirror online.
According to a spokesman the importers had obtained huge bank loans to import the white rice expecting a serious shortage of rice in Sri Lanka but at the time the stocks arrived local rice was a plenty and selling at a cheaper price.
The white rice from Pakistan was purchased at a wholesale price of Rs. 58 per kilo from Pakistan and was to be sold in Sri Lanka for around Rs. 59-60 to the consumer while the local white rice is selling at Rs. 50-52 a kilo.
Dealers say as a result of the cheaper local produce the imported rice cannot be sold as the dealers would run into a further financial loss and so the stocks have now been stored until a solution could be reached. (Daily Mirror online)
Comments - 21
Monday, 17 May 2010 08:02 AM
SW is completely right. Business is a Gamble. Who are the government to guarantee the investment made by Speculators? Did we tell them to take BANK LOANS to buy this rice? They didn't import Rice to help the country, they did it to MAKE a PROFIT. Bad luck for them. They should dump the Rice at the Local rate and eat the Loss. Don't expect the government to foot the bill for your losses.
Monday, 17 May 2010 08:16 AM
DEAR IMPORTER- PLS ASK THE GOVERMENT TO PAY FOR THE LOSSES-OVER TO YOU MR.MINISTER-TRADE & COMMERCE
Sunday, 16 May 2010 12:23 PM
Do you want us readers to pay for it now ?
Sunday, 16 May 2010 12:25 PM
Wonderful! Good sign of economic recovery. Please ministers do the proper planning or have clear understand about your activities. Do not let the people to assume and do.
Sunday, 16 May 2010 12:41 PM
Sunday, 16 May 2010 12:42 PM
Simple, reduce the price and unload the rice in the local market, you cannot always hope to make fat profits. You win a few , you lose a few, life goes on.
Sunday, 16 May 2010 01:02 PM
So what?...... you wish to destroy local rice production to allow imported rice to be sold in the market at a higher price.
Monday, 17 May 2010 08:30 AM
this by far is the best news i've heard in a long time. well done our beloved farmers
Sunday, 16 May 2010 02:03 PM
Maybe another increase in price of bread might do the trick to get rid of the stock of rice. But the problem is people cannot eat plain rice and they need at least a "pol sambol" which is going to kill them with the price of coconut.
Sunday, 16 May 2010 03:32 PM
Sunday, 16 May 2010 03:41 PM
Profit maximizing or loss minimizing?
Sunday, 16 May 2010 04:47 PM
So, now it is bad that local farmers' rice is being sold? :P
Sunday, 16 May 2010 04:50 PM
Guess what, we should encourage our famers more and start exporting our own rice to other countries...
Sunday, 16 May 2010 10:06 PM
someone must have made some money out of this import at both countries!!
Monday, 17 May 2010 12:26 AM
The "Rice Mudalali Mafia" will now try to create an artifical stortage of rice to jack up the price, and blame the Government.. The Government should not allow this to happen. This is a bad business decision by the "Rice Mudalali Mafia" who should absorb the loss, not blame the Government.
The Government should not allow this to happen. This is a bad business decision by the "Rice Mudalali Mafia" who should absorb the loss, not blame the Government....')" type="button" class="btn btn-outline-secondary btn-sm" style="padding-top: 0px; padding-bottom: 2px">Reply
Monday, 17 May 2010 02:06 AM
This is the nature of business. Just like profit traders have to absorb loss some time. Seeking public (government)assistance go against the market principles. Beside these traders are just importing (using hard currency) not like they produce it in the country in which case public assistance is warrented
Monday, 17 May 2010 04:04 AM
Businessmen must foresee the trends of the market and take decisions based on that to make the maximum profit or whatever they want. It seems like the rice dealers have not followed that rule. So, they are going to make losses. They themselves have to bear the losses. I don't know what the 'solution' they are talking of. Are they requesting the government to increase the price of rice or pay them a compensation to overcome the losses?. WHAT A JOKE.......?
Monday, 17 May 2010 04:06 AM
The consumers nor the farmers are to blame for the foolish business decisions of the traders.
Monday, 17 May 2010 04:43 AM
will see what the govt / ministers will do ?? will they save handful of businessmen or will they save 20million people !
Monday, 17 May 2010 05:57 AM
why don't they import rice in off season. there was a rice sortage in december and january.
Monday, 17 May 2010 06:50 AM
It's all in the game of business, making profits well as losses.
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