Ravi K claims merchants hoarding rice stocks to keep prices high

• Warns errant traders of severe punitive action if caught

Finance Minister Ravi Karunanayake yesterday accused traders of hoarding rice and “stacking up on the profits” instead of allowing prices to decrease to reflect the reduction of export levies, warning that errant traders would suffer severe punitive action. 

Calling on wholesale traders to release stocks to the market, Minister Karunanayake also sought the help of the media to speak to the “conscience” of the business community to bring the prices down. 

“There was no need to reduce the taxes to reduce prices even though it was unnecessary we have done so. So why are they not reducing the prices? The media should question them,” he appealed. 

Last week the Government took steps to reduce the export levy by Rs. 10, but the Minister claimed that the benefits of this decision had not been passed on to the consumers yet and appealed to the media to help him manage the issue and question the traders over why they could not bring down prices even after taxes had been reduced. 

“The special commodity levy on rice has been subjected to two revisions, it was reduced twice. After the first reduction since the intended benefit did not accrue to the people, the Government reduced it by another Rs. 10 and I am sad that the benefit has still not gone down to the consumer. Our intention of reducing it by Rs. 15 and bringing in rice from India at about Rs. 50 is so you can easily sell it at about Rs. 65 but it’s still hovering much higher than that. We have reduced the price but the consumer is being deprived by a black market which is being operated by a couple of people who are hoarding at this point,” Karunanayake claimed. 

According to him, rice exported from India only takes four days to reach Sri Lankan traders and the revision of levies conducted last week should be reflected in current market prices. However, he was not able to give details of the current market prices. 

He said about 23,000 metric tonnes of rice had already arrived in the country.

When asked about the action being taken to bring down prices, the Minister claimed that the subject did not fall under his purview. 

“The responsibility is with the Consumer Affairs [Ministry]. But trying to raid them is not the answer, you have to tap the conscience of these people,” Karunanayake claimed.