Financial Times

Rice imports to bring down prices?

The government is considering the import of rice in an effort to bring down the retail price of rice, Minister of Trade Commerce and Consumer Affairs Jeyaraj Fernandopulle said in an interview.

It might even go so far as to remove all taxes on rice imports to encourage the private sector to import rice, he said.

The government has said it is concerned that rice millers and dealers were exploiting consumers and farmers by buying paddy cheap and selling rice at artificially high prices.

The ministry is monitoring rice price fluctuations and has observed that the price of 'nadu' has gone up from Rs.29.00 to Rs.33.00 a kilo by Friday morning in the Colombo market.

The minister said that it would take another two and a half months to harvest the Yala crop but that the government would not wait for the next harvest to bring down prices. The minister is confident that the paddy farmers have no more stocks, having sold them to millers and dealers. The ministry has launched a survey with the assistance of the district secretariats to find how much stocks are in the hands of millers. (LA)

Back to Business