Ad hoc rice imports blamed for growing paddy marketing crisis

Colombo, July 8 (Daily Mirror) - The flooding of the domestic market with imported rice ahead of the harvesting season has triggered the current crisis in the paddy marketing sector, according to analysts.

As much as 156,285 tonnes of Ponni Samba rice from India and another 519 tonnes from China had been imported in recent months after the Government relaxed import restrictions despite the approaching Yala harvesting season.

In addition, 3,797.5 tonnes of Basmati rice had been imported from India, while another 6.8 tonnes had come from China.

Farmers across the country have staged protests in recent weeks demanding better prices for their Yala harvest, which is currently being collected in major rice-producing districts.

Several farmer organizations have conducted demonstrations urging the Government to introduce minimum guaranteed prices for key rice varieties, including Nadu, Samba and Keeri Samba.

Agriculture Minister K.D. Lalkantha and Trade Minister Wasantha Samarasinghe held discussions with stakeholders, including leading rice millers, on Monday to decide on minimum support prices for paddy.

Following the discussions, the Government announced guaranteed prices of Rs.120 per kilo for Nadu, Rs.130 for Samba and Rs.140 for Keeri Samba.

However, rice mill owners have expressed concerns that retail rice prices could rise if they are required to purchase paddy from farmers at the announced prices.

A spokesman for the Tissamaharama Rice Producers’ Association said the current wholesale price of rice was around Rs.150-155 per kilo.

“If we purchase paddy at the newly announced prices, wholesale prices could increase to at least Rs.200 per kilo. Retail prices would be even higher,” he said.

A harvest of around 1.6 million tonnes of paddy is expected during the Yala season, with harvesting is already underway in several areas. However, the Paddy Marketing Board (PMB) has the capacity to purchase only around 39,000 tonnes, leaving the majority of the harvest to be absorbed by the private sector.

Earlier, Minister Samarasinghe said government storage facilities would be cleared to make room for fresh paddy purchases.

Meanwhile, the Government has reintroduced restrictions on rice imports following concerns over the impact of imported rice on local farmers and the domestic market.