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CWE to obtain Rs. 2 billion loan to import rice
The Cooperative Wholesale Establishment (CWE) has been granted approval by the Government to obtain a 2 billion rupee loan to import rice as an urgent measure to overcome a shortfall.
Commerce Minister Bandula Gunawardena told the Sunday Times imports would likely be made from India due to its close proximity and affordable prices.
“We may experience a shortage of rice in November and December and therefore have made arrangements to import rice,” he said.
Cabinet approval was granted for the Treasury to grant a Letter of Comfort to obtain the loan, repayable within four months.
He said moves were underway to import around 100,000MT, but the amount could vary depending on the requirements.
The Ministry’s move to import rice come amidst allegations that some of the main rice millers were hoarding paddy stocks.
The Consumer Affairs Authority this week raided an Ekala warehouse where they found 300MT of rice fit for human consumption had been stocked to produce animal feed.
Under a gazette notification issued in July 2020, it is prohibited to use rice fit for human consumption for production of animal feed.