Rice market still churning

The rice market, which has been in a state of turmoil in recent weeks, is yet to return to normal, although, according to traders, the situation has greatly improved in the past few days after the government withdrew its ceiling on wholesale prices for three popular rice varieties.

Stocks of samba, nadu and red are expected. Present market stocks of these varieties are insufficient to meet demand. The government claims that farmers and paddy millers are holding back on stocks in the expectation of a further price increase in the coming months, during a time of shortage.

Representatives of the Consumer Affairs Authority (CAA) this week visited some of the bigger rice mills in Polonnaruwa and found that most of the millers there had adequate stocks. For example, the Nipuna rice mill, run by Agrarian Services Minister Siripala Gamlath, was in possession of 6.4 million kilos of paddy, while the Araliya rice mill had 3.2 million kilos of paddy.

Minister Gamlath told The Sunday Times that the paddy stocks in his mill were a buffer stock and not meant for release into the market. Meanwhile, Agriculture Minister Maithripala Sirisena told The Sunday Times that more rice would have to be imported in order to end the private sector’s monopoly over the rice trade.

He said that over the next few months the government hoped to boost rice stocks and exercise greater control over prices. Mr. Sirisena said there were no plans to remove controls on retail prices.