Government paddy purchases delayed as warehouses remain full, farmers’ group claims

By Mangala Pavithrani

Colombo, July 02 (Daily Mirror) - The National Agrarians' Unity has alleged that government purchases of newly harvested paddy in the Northern and Eastern provinces have been delayed because warehouses operated by the Paddy Marketing Board (PMB) remain full of old stocks.

Speaking to the Daily Mirror, National Agrarians' Unity Chairman Anuradha Tennakoon said harvesting is progressing under minor irrigation schemes in the districts of Trincomalee, Batticaloa, Mullaitivu, Mannar and Vavuniya, but farmers have been unable to sell their produce to the government.

He claimed that the PMB currently has around 120,000 metric tonnes of paddy in storage and has only begun the process of clearing old stocks. According to Tennakoon, tenders were called to remove 15,000 metric tonnes of paddy from warehouses in the Northern and Eastern provinces, with the bids scheduled to be opened on July 8.

Tennakoon said it could take at least another two weeks to complete the clearance process, further delaying government purchases of the current harvest.

He further alleged that the government intends to sell the 15,000 metric tonnes of paddy, originally purchased at Rs. 120 per kilogram, to the private sector for around Rs. 100 per kilogram. After accounting for handling and operational costs, he claimed the government would incur a loss of approximately Rs. 370 million from the sale.

Tennakoon also alleged that the PMB plans to sell its entire stock of 120,000 metric tonnes at a loss, resulting in an overall financial loss of about Rs. 3 billion. He described it as the highest percentage loss on existing paddy stocks in the PMB's 55-year history and accused the government of failing to deliver on its promises to strengthen the board.

According to Tennakoon, the Northern and Eastern provinces are expected to produce nearly 400,000 metric tonnes of paddy this season, while government warehouses can accommodate only 15,000 to 20,000 metric tonnes.

He said around 402,000 hectares have been cultivated nationwide this year, with total paddy production expected to reach between 1.8 million and 2 million metric tonnes. As the government is expected to purchase only a limited quantity, he said farmers will have to depend largely on private buyers.

However, Tennakoon claimed that many rice mill owners are also restricting purchases because their warehouses are already full, leaving many farmers unable to sell their harvest. He alleged that paddy is being sold for as little as Rs. 60 to Rs. 75 per kilogram in areas including Kilinochchi and Vavuniya, well below the government's guaranteed price of Rs. 120 per kilogram.

He added that the National Agrarians' Unity intends to pursue legal action under the Anti-Corruption Act No. 9 of 2023 over what it alleges is the misuse of public funds.