Ravi K assures speedy solution to rice crisis

Monday, 13 February 2017 00:07 - - {{hitsCtrl.values.hits}}

The Minister of Finance said that the Government is evaluating all available options to find a solution to escalating rice prices.

The rice prices remain high despite efforts by the Government to reduce rice prices through tax concessions leaving the Government to explore other options.

Minister Ravi Karunanayake pointed out that the Government move to reduce import duty was to ensure that the price of rice reduces immediately.

“It is strange, under such environment; the benefit of the move is not passed on to the people,” he said speaking at a function in Chilaw on Saturday.

At the same time, the minister pointed out that a maximum price has been introduced to control prices of rice and, stern action will be taken against unscrupulous traders who disregard such regulations and sell rice at exorbitant prices.

The minister also explained about the crisis situation that has erupted in the country with regard to prices of rice.

“Unscrupulous traders have created crisis in rice prices and, we implemented a program to clear it. However, effects of the program were limited. When duty on imported rice is reduced and, a maximum retail price for rice is imposed, rice cartels are compelled to release their hoards to the market. We have to strengthen our supply chain in order to prevent further disputes as well as to save the customer from unscrupulous traders. The existing crisis is purposely created by rice cartels. Therefore, we will stand with the people and will take future action to supply rice at controlled prices to ease this artificial crisis,” Finance Minister Ravi Karunanayake said.

Sri Lanka to import 50,000 MT of rice from Myanmar

Sri Lanka has entered into an agreement with Myanmar to import 50,000 metric tons of rice by June, according to the Myanmar Rice Federation (MRF).

The Myanmar Rice Federation, the national organisation for the rice industry which is responsible to negotiating rice export deals, said five companies have won contracts for the export of 50,000 metric tons of rice to Sri Lanka.

Myanmar Commerce Minister Dr. Than Myint held talks with a delegation led by the Sri Lanka ambassador to Myanmar, KWND Karunaratne, at his office in Nay Pyi Taw on January 23 and signed a memorandum of understanding on rice exports.

According to an official, MRF has invited companies to submit bids for rice exports to Sri Lanka and selected five companies out of the 10 companies applied.

Sri Lanka’s rice production has declined by about 200,000 tonnes after a drought last year. Sri Lanka is reducing rising rice prices and the control of rice millers by reducing import tariffs.