Govt. intentionally delaying minimum guaranteed price for paddy: Namal Karunaratne

Colombo, January 27 (Daily Mirror)- The government is intentionally delaying the announcement of the minimum guaranteed price for paddy as there is a distorted situation with regard to paddy purchasing in the country right now, Agriculture and Livestock Deputy Minister Namal Karunaratne said today.

He told a news conference that the government will announce the minimum guaranteed price for paddy at the right time.

"We are intentionally delaying the announcement of the minimum guaranteed price for paddy. Paddy is purchased at higher prices now. Even wet paddy is purchased at Rs. 140 a kilo and dried paddy at Rs. 160. This is a distortion. If a kilo of paddy is purchased at that rate, how much a kilo of rice would be? A kilo of rice might exceed Rs. 300," he said.

The Minister said this distorted situation is created by the rice millers at the beginning of every harvesting season and gradually decreases the price when they purchase large stocks of paddy at low prices later on.

"We are well aware of this situation. We are not intervening in the paddy price at the moment. Farmers anyway sell their harvest at higher prices even in a distorted situation. If we announce a minimum guaranteed price now, the paddy price will drop. It is unreasonable for farmers," he added.

The Deputy Minister said the government will announce the minimum guaranteed price for paddy at the right time and added that 30 per cent of the production cost will add to the production cost of a kilo of paddy this time for the first time in history.

"Earlier, only Rs. 5 was added to the production cost. We will add 30 per cent of the production cost. If the production cost of a kilo of paddy is calculated to be Rs. 100, the price of a kilo of paddy will be Rs. 130. The production cost has been calculated by five institutions," he said.