Police mobilised for major crackdown on rice hoarders

As Police prepared to accompany Government officials for raids on rice hoarders from tomorrow, traders warned they would not release any new stocks for sale because they would suffer losses. Trade and Consumer Affairs Ministry Secretary R.M.K. Ratnayake, told The Sunday Times that from tomorrow Police would accompany officials of the Consumer Affairs Authority (CAA) on raids.

“We will only sell the existing stocks. We will not put out new stocks in the market and suffer losses,” countered P.K. Samy, President of the Pettah Rice Traders Association. Dr. Ratnayake said he had obtained the support of Police Chief Victor Perera to carry out the raids as the CAA had only 45 officials and might find it difficult to cover the entire country. Mr. Samy said consequent to the Government’s decision to introduce price control from Thursday, the traders in Pettah would dispose of old stocks they had.

“We cannot sell the remaining quantities and suffer colossal losses,” he told The Sunday Times. He said existing stocks had been purchased by dealers at higher prices from the millers. The Government’s crackdown on rice hoarders and warnings by the trade that stocks would not be available in the market mean rice will be scarce in the market.

Yesterday, supermarkets began rationing rice to one kilogramme per customer. Some of the lesser known supermarkets were cashing in on the shortage to insist that customers buy items worth Rs 1,000 or more to qualify for five kilogrammes of rice.

The shortage, it is feared, would have a crippling effect on middle class restaurants and hotels in the city where the working class converge for the staple diet of rice and curry. Most traders in Pettah on Friday closed their shops claiming they were still closed for the New Year while others said price-controlled rice were out of stock though other varieties were available.

Meanwhile the government has made use of a minister and his supporters to find out details of those hoarding rice. The supporters of the minister on Friday were seen moving in the Pettah area looking for shops that were hoarding rice.

Earlier the Government announced it was planning to purchase rice from India, Pakistan and Myanmar before the New Year, but plans to purchase from India and Pakistan have failed. Indian High Commission spokesman Dinkar Asthana said there was still no response from New Delhi to a request made by President Mahinda Rajapaksa himself last month for the export of rice.

Pakistan is also not selling rice to Sri Lanka as their internal consumption has increased while stocks from Myanmar are likely to be delayed by at least two weeks. Dr. Ratnayake said the government was getting 100,000 metric tonnes of rice from Myanmar and the delay was due to holidays in both countries.