President directs new price limits for rice

President Anura Kumara Dissanayake 

• Instructs CAA officials to closely monitor situation over next 10 days, strictly enforce law against rice mill owners who fail to comply 
• Traders complain Rs. 5 margin between retail and wholesale prices not sufficient to cover costs
• Consumers claim rice varieties still not available at stipulated prices
• Essential Food Commodities Importers and Traders Association says rice stocks will arrive next week

President Anura Kumara Dissanayake on Saturday announced a new maximum retail price (MRP) and wholesale price limit for various rice types, emphasising the need for cooperation from mill owners to address the ongoing issues in the market. 

The new directives were issued during a meeting along with Trade, Commerce, Food Security and Cooperative Development Minister Wasantha Samarasinghe, Ministry officials, and rice mill owners and traders at the Presidential Secretariat.

He directed rice traders to sell Nadu rice to consumers at a wholesale price of Rs. 225 per kilo and a retail price of Rs. 230 per kilo.

However, traders yesterday argued the Rs. 5 margin between retail and wholesale prices is not sufficient to cover costs. They also noted that rice mill owners had not issued fresh stocks to the market, despite the directive on Saturday, exacerbating the shortage in the market.

As per the President’s directive, following are the new prices:

•  Wholesale price of a kilo of Nadu rice: Rs. 225, Retail price: Rs. 230
•  Wholesale price of a kilo of White rice: Rs. 215, Retail price: Rs. 220
•  Retail price of a kilo of imported Nadu rice: Rs. 220
•  Wholesale price of a kilo of Samba rice: Rs. 235, Retail price: Rs. 240
•  Wholesale price of a kilo of Keeri Samba: Rs. 255, Retail price: Rs. 260

However, consumers yesterday claimed that rice varieties are still not available at the stipulated prices. 

Separately, the Essential Food Commodities Importers and Traders Association spokesperson confirmed that the first shipment of imported rice will arrive in the country next week.

Noting that several importers have already placed orders to import rice, he highlighted that the relevant rice stocks were ordered from India and Pakistan. “The shipments are expected to arrive within next week,” he added.

During the meeting on Saturday, the President also instructed the officials of the Consumer Affairs Authority (CAA) to closely monitor the situation over the next 10 days and strictly enforce the law against rice mill owners who fail to comply with the fixed prices.

The President highlighted that the largest investments in the country are allocated to the Highways Ministry, followed by the Irrigation and Agriculture sectors, with substantial subsidies provided to farmers through taxes paid by the public, whilst pointing out that low-interest bank loans were provided to traders to purchase paddy. Thereby, the President asserted the rice traders not to undermine the public’s right to access affordable rice.

The President strongly criticised rice mill owners for frequently changing rice prices on a daily basis and instructed the CAA to monitor daily rice production and distribution by the mills.

Dissanayake called on rice mill owners to collaborate with the Government in resolving the rice-related issues in an amicable manner.

The meeting was attended by Trade, Commerce, Food Security and Cooperative Development Minister Wasantha Samarasinghe, Secretary to the President Dr. Nandika Sanath Kumanayake, Ministry of Trade, Commerce, Food Security and Cooperative Development Secretary A. Wimalenthirajah, Ministry of Agriculture, Livestock, Lands and Irrigation Secretary D.P. Wickramasinghe, Department of Development Finance Director-General Malarmathy Gangatharan, Department of Agriculture Acting Director-General Dr. S.K. Wasala, CAA Chairman Hemantha Samarakoon, Paddy Marketing Board Chairman A.M.U. Pinnalanda, and Hector Kobbekaduwa Agricultural Research and Training Institute Director A.L. Chandika, among other officials.