News
Raids to restore rice price stability
As rice prices shoot up amidst a shortage, a deputy minister warned yesterday that raids would be carried out on mills that hoarded paddy without milling it and releasing the rice to the market.
Deputy Internal Trade Minister Hemal Gunasekara told the Sunday Times the ministry had called upon millers, traders and importers to give details of the stocks of rice and paddy in their possession.
Rice prices on the rise. Pic by Susantha Liyanawatte
They should furnish the details before September 15 and thereafter every fortnight, he said adding that the ministry was taking measures to address the current shortage experienced in the rice market.
“After they declare their stocks, we will carry out raids to check the stocks and prosecute mill owners or traders who are found to be keeping excessive stocks,” Mr. Gunesakara said.
The deputy minister admitted that most large-scale millers were not releasing stocks to the market and as a result the prices of rice had gone up.
“They are taking undue advantage of the situation by not releasing stocks to the market,” he said.
The ceiling on retail prices imposed by the ministry has been rendered meaningless as most traders are selling rice well above the stipulated prices.
A kilogram of Nadu rice, for instance, is sold between Rs.70 and 80 though the gazetted ceiling price is Rs. 68.
The deputy minister said that although the ministry was aware of the violation, it was unable to control the situation as there was a shortage of rice in the market. But he expressed hope that once the ministry and Consumer Affairs Authority officials begin their raids in the coming weeks, traders would stick to the gazette price.
Meanwhile, traders claimed they were unable to sell rice at the ceiling price without incurring losses as they had bought their stocks at higher prices.
Old Moor Street Traders Association President P. Sundaram said that there was a severe shortage of rice and even wholesale traders buy rice at a price higher than the gazetted retail price.
As the rice crisis escalates, some retail traders cite value additions to justify the selling of rice at a price higher than the gazetted price.
Supermarkets, however, stick to the gazetted prices, but they have imposed limits on the quantity a customer could buy to minimise their losses.