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Govt. gazettes fixed rice prices: shortage likely in the coming days, traders warn
Traders have cautioned the Government that they are unable to provide rice at prices stipulated by the Consumer Affairs Authority (CAA) and this could result in a shortage of rice in the market in the coming days.
The traders said they did not receive rice below the government issued maximum retail prices and therefore were unable to sell rice at a four-rupee profit as expected by the Government because they had to incur transport costs also.
A gazette issued on Wednesday fixed the maximum prices for millers and rice producers. Accordingly they should sell white or red Samba at Rs 94 a kilogram, Nadu at Rs 92 and Red raw rice at Rs 89. Already some of the popular rice varieties, including red rice are in short supply.
The traders said the millers were unable to produce the rice at the prices fixed by the Government as the cost of production was too high.
“Even the maximum retail prices for rice do not even cover the cost spent on buying rice from wholesale markets. Therefore, traders may refrain from selling rice,” a member of a Pettah traders association said.
Traders said the scarcity might increase the prices of rice.
However, Trade Minister Bandula Gunawardena told the Sunday times that the Government had issued Gazette notification fixing the maximum retail prices of rice and the traders had to abide by it.
“Yesterday we had discussions with both big and small paddy millers and they agreed to sell rice at the recently gazetted control price. Therefore, we expect traders to sell rice at the maximum retail price. If the traders do not do so, the Government will buy rice directly from the millers and sell it to the people at Sathosa outlets.
“During the pandemic, we need to think of the people, not profits.We are watching what the traders will do. If they try to create shortages or sell rice above controlled prices the Government will take action against them,” he warned.
The Consumer Affairs Authority’s said it would conduct special raids and take actions against traders who sold rice at higher prices.
A spokesman said they had already conducted about 150 raids during this week and had taken legal action against traders and millers who sold rice at higher prices.