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Rice shock: 40 percent drop in production, huge imports soon
View(s):Rice production in Sri Lanka is expected to drop by 40 percent compared to last year, the United Nations’ Food and Agriculture Organisation (FAO) and the World Food Programme (WFP) warned in a joint report. The report estimates that 686,000 MT of rice will be required to be imported as a result of the recent drought followed by heavy rain in rice-producing areas. Other crops, such as chillies and onion which rely mainly on rainwater, were also heavily damaged by the dry weather, the report said.
A total production of paddy in 2017 was estimated 2.7 million MT, a forty percent less than last year’s paddy production and a 35 percent lower than the average for the previous five years. The most severely drought-impacted districts include Kurunegala, Moneragala, Vavuniya, Mannar and Jaffna. Meanwhile, the Government has planned to import 300,000-500,000 MT of rice in view of the sharp decline in production.
Commerce Ministry Secretary Chinthaka Lokuhetti told the Sunday Times rice imports would begin within three weeks and discussions were being held with Pakistan, Thailand, Indonesia, India and Vietnam. Reacting to the import plans, All-Island Farmers Federation (AIFF) National Organiser Namal Karunaratne said there was enough paddy for the entire year and for the first few months of next year.
He said big time millers had paddy stocks from 2015 and were currently selling old stocks while buying a kilo of paddy from the farmer at Rs 32 and selling rice at about Rs 100 a kilo. He said rice imports would only lead to drop in local prices and millers would be able to buy paddy at lower prices, in a further blow to farmers.