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Rice prices to increase as price-controls come off
View(s):Rice prices are set to increase with the removal last week of price-controls on rice.
A Pettah trader told us that the wholesale price of rice is Rs 75-92 in the market. He said the imported varieties of Nadu, Ponni and white raw rice were sold for Rs 65, 75 and 80, while local rice varieties of red raw rice and sambha were sold at Rs 78 and Rs 92 respectively.
A retail trader said the price of rice increased by Rs 4 to 5 after price-control was removed. He said imported Nadu is sold at Rs 85 while local sambha was sold for Rs 95, while some rice varieties were not available in the wholesale market.
Paddy Marketing Board Chairman M.B. Dissanayake said about 45,000 metric tonnes (MT) is available in their stocks which will be distributed through Lak Sathosa outlets islandwide. Meanwhile, Industry & Commerce Ministry Secretary Chinthaka Lokuhetti said, “Although there is a significant drop in the paddy harvest this time, we have delayed importing rice, as harvesting of local paddy has commenced.
He said rice would not be imported in bulk. Only on a weekly or monthly basis, depending on availability and the requirement of rice in the local market, adding that, the first stock of 30,000 MT is likely to be imported from India.
However, Mr Lokuhetti noted that the private sector has started importing rice stocks from various countries including India and Pakistan, which would lead to a reduction in rice prices due to competition. In the meantime, farmers in the dry zone are facing a dire situation as thousands of acres of paddy lands are not cultivated due to the prolonged drought, causing a significant reduction in the rice supply.
President of the Kumbukwewa Farmers’ Organization in the Kurunegala District, R.M.P.B. Rathnayake, said, “Of the 7,634 acres usually cultivated from the ‘Bathalagoda Jalasha Vyaparaya’, only around 2,000 acres were cultivated this Yala season. He said the harvest from the cultivated lands was also around 60 bushels (2,160 kg) per acre, adding that, a larger proportion of the harvest had to be reserved for seed paddy, as there will be a severe shortage of seed paddy in the future. He said that, in his area, they could not cultivate the paddy lands for 3 consecutive seasons, due to the scarcity of water.
Secretary of another Farmers’ Organisation in Padaviya in Anuradhapura, U.B. Rajakaruna said, “Of the 492 acres, only 92 acres were cultivated this time. But the harvest from the cultivated lands was successful, with 1 acre of paddy yielding 125 to 150 bushels (4,500 kg-5,400 kg).
However, Polonnaruwa farmers said they managed to cultivate a larger proportion of their paddy lands. President of a Farmers’ Organization in Girithale, Polonnaruwa, M. Lalitha Perera said they could cultivate the entire 315 acres of paddy lands by using the water available in the Girithale tank, sparingly. She said they were able to sell their paddy at a good price too, between Rs 46 to Rs 49.