Lanka on rice hunt for New Year

By Malik Gunatilleke

With just a week to go for the National New Year, Sri Lanka’s staple diet of rice is in crisis and confusion with reports of rationing while the government is taking urgent steps to import stocks from Myanmar, India and Pakistan. Trade and Consumer Affairs Minister Bandula Gunawardena who headed a delegation to Myanmar yesterday finalized a contract to buy 50,000 tonnes of rice while government officials hoped for low-cost imports from India and Pakistan to stabilize prices and prevent shortages during the New Year period and after.

The rice crisis for the New Year period was aggravated by the recent heavy floods which destroyed thousands of acres of paddy land in several districts. Officials said the government hoped to import 200,000 to 250,000 metric tonnes with about half of it coming from India and the rest from Myanmar and Pakistan.

But there was confusion and contradictory reports regarding rice imports from India. The President’s Office claimed India had agreed to relax export restrictions and allow Sri Lanka to import rice on concessionary terms. But Indian High Commission spokesman Dinkar Asthana said no decision had been taken yet though the matter was under consideration.

Trade and Consumer Affairs Ministry Secretary R.M.K. Ratnayake said 50,000 metric tonnes of rice would be bought from Myanmar but the deal with Pakistan had not been finalized because the white rice on offer could not be kept for a long period.

Pettah Traders’ Association president S.P. Samy said at least 100,000 metric tonnes of rice were needed urgently to stabilize prices for the festive season. Old Moor Street Traders’ Association President K. Sundaram said that despite the floods, 60 to 70 percent of the requirements of rice had been met by local cultivators and he was confident the remaining 30 percent could be imported soon to keep prices at reasonable levels.

But most consumers said prices were soaring while one supermarket chain was rationing sales to prevent traders from buying big stocks and selling at higher prices.