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Govt imports rice despite private sector claims of declining demand
View(s):While private sector rice importers claim the demand for imported rice in the market is declining, the Govt is going ahead with its imports, and the first stock of rice is expected to reach the country by the second week of this month.
Many varieties of imported rice in the retail market
Cooperative Wholesale Establishment (CWE) Chairman Mohammed Rizwan Hameem said they have reached the final stages of importing rice, with the first stock of 10,000 MT of white Nadu to be imported from India, as the initial step, and will be loaded onto the vessel on Oct.5.
Mr Hameem noted that it is expected to import 500,000 MT, at around 100,000 MT per month, of different varieties, mainly White Nadu and White Samba from India, and White raw rice and broken rice from Pakistan, in the future.
“Although CWE earlier expected to import rice from Myanmar and a few other countries, the first stock was chosen to be imported from India, as the prices in other countries were comparatively higher.” he said.
Meanwhile, Essential Food Commodities Importers and Traders Association (EFCITA) said, from May this year, they have imported about 400,000 MT of rice to date, after the Cost of Living Cabinet Sub Committee allowed the private sector too, to import rice.
EFCITA Spokesman Hemaka Fernando said, about 200,000 MT of Nadu, 150,000 MT of White Kekulu and around 50,000 MT of Samba rice have been imported to date. He said these rice stocks were distributed through the wholesale market, supermarkets and Lanka Sathosa outlets.
He noted that, the quantity of rice imported now is less, as demand for the imported varieties in the local market, is less. Mr Fernando said many prefer the local varieties to the imported rice, though sometimes imported varieties are cheaper.
Stocks of imported rice in a warehouse
Meanwhile, Lanka Sathosa has reduced the prices of several varieties of rice from Rs 5 to Rs 2 per kg from midnight Thursday.
Accordingly, Samba dropped from Rs 89 to Rs 84, white Kekulu Samba from Rs 94 to Rs 90, White Nadu from Rs 77 to Rs 74, White Kekulu from Rs 68 to Rs 65, Red Nadu from Rs 83 to Rs 80, Red Kekulu Samba from Rs 90 to Rs 88, Red Kekulu from Rs 77 to Rs 75 and Broken rice from Rs 65 to Rs 60.
A Pettah trader told the Sunday Times they are also compelled to reduce the prices of rice as Lanka Sathosa has lowered its prices. He noted it would take 2 to 3 days to stabilise prices, subject to demand.
“Currently, the wholesale prices of rice per kg, in the Pettah Market were White Nadu Rs 72, White Kekulu Rs 70, Red Kekulu Rs 85, Red Nadu Rs 95, White Kekulu Samba Rs 98 and Red Kekulu Samba Rs 105, while retail prices were almost Rs 5 higher than the corresponding wholesale price,” he said.