News

Rice imports only if there’s a shortage

Myanmar and Pakistan ready to help, says Minister
By Malik Gunatilleke

Should artificial rice shortages arise in the coming months the government is ready to make the necessary imports, says Trade Minister Bandula Gunawardena. The minister was allaying concerns about a possible shortfall in rice stocks.

Minister Gunawardena said unidentified persons intent on bad-mouthing President Mahinda Rajapaksa were spreading rumours about rice shortages.

There is plenty of rice in stock, despite shortfalls in this year’s harvest as a result of failed rains, the minister said, adding that the government would import rice from Myanmar and Pakistan, should the need arise.

“We have had no cause to import rice in the past two years, and even if there is a delay in some of the rice entering the market, there will be no shortage, and there certainly isn’t one at present,” the minister told the Sunday Times.

Minister Gunawardena said the government of Myanmar has promised the government of Sri Lanka unrestricted imports of rice, sugar, dhal and other commodities, in case of shortages, and that the government of Pakistan had given similar assurances.

“Some Opposition members in Parliament have been quoting false food prices, and outstation traders are setting their prices accordingly. Dhal in the open market costs Rs. 200 a kilo, while Sathosa is selling a kilo at Rs.180,” he said.

The Minister said there were 131 Sathosa outlets around the country, and consumers could see for themselves how prices have been exaggerated.

K. P. Sundaram, president of the Old Moor Street Traders’ Association, said there were no rice shortages in the market at the moment, but a one-month delay in stocks could affect the market around March next year.

“Rice stocks usually enter the market around January or February, but because the rains failed us this year, the government may have to import stocks,” he said.

Mr. Sundaram said the government may have to consider a reduction in import taxes to allow additional imports to enter the market.

 
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