Indian rice starts moving in Sri Lanka, no more fears of shortages

Wednesday, 8 November 2017 00:00 - - {{hitsCtrl.values.hits}}

20,000 MT Nadu rice tranche now in Colombo
Mere $ 8.9 million for latest lot
Indian stocks end any supply shortage fears
Coming from Indian private supplier at competitive prices
Intl. open tender call successful, samples also received
34 local and international bidders for intl. call
Received samples have been sent to local labs for testing

The first batch of low-priced rice out of the huge 100,000 MT Indian rice tranche has been offloaded and is now moving within the Sri Lankan retail market, ending any supply fears.

Meanwhile, the open international tender call for 200,000 MT of rice in three varieties also successfully closed in Colombo last week.

By the weekend of 4-5 November, a 20,000 MT tranche of parboiled nadu rice sent by an Indian private sector supplier to the Cooperative Wholesale Establishment (CWE) of Sri Lanka was offloaded at the Port of Colombo and has been distributed at CWE warehouses. The value of the received 20,000 MT rice stock is $ 8.9 million (Rs. 1.36 billion).

This rice stock is now being redistributed from CWE’s warehouses to Lanka Sathosa outlets to be sold at only Rs. 74 per kg. Any consumer purchasing more than 25 kg of this rice from Lanka Sathosa can buy it for an even lower Rs. 73 per kg.

Industry and Commerce Minister Rishad Bathiudeen, addressing a press briefing on 1 November in Colombo highlighting his efforts to end rice supply shortages through yet another global tender call, said: “Our international tender to import 200,000 MT of rice closed on 31 October. Rice samples submitted with tender bids are being forwarded to ITI for lab tests.”

The latest tender is, unlike previous Government to Government (G2G) tenders, a “Sri Lanka Government to local and international private sector” call. A total of 34 local and international private sector suppliers have offered quotations for the 200,000 MT tender which was initially announced on 19 October and closed on 31 October.

The Ministry has forwarded all the submitted quotes to the Cabinet Appointed High Powered Tender Board which will compare the prices of these international and local private sector suppliers with ‘government to government’ prices quoted in previous G2G tender calls, before making final selections.

The international tender was floated by the Ministry of Industry and Commerce of Sri Lanka on the directions of the Government’s Cost of Living Committee.

The Cabinet Appointed High Powered Tender Board is expected to pick the qualifying suppliers for this 200,000 MT international tender by Friday, 10 November. Private sector suppliers from Pakistan, Myanmar, Thailand, India and Vietnam offered quotations.

Several Sri Lankan suppliers also submitted their bids for the 200,000 MT which consists of three varieties – 90,000 MT of Parboiled Nadu rice, 60,000 MT Samba (Parboiled) rice and 50,000 MT of White Raw rice.