News
Price control on retail rice sales; Rs. 100,000 fine for traders, millers
The Trade Ministry is to revert to imposing a price control system on retail rice sales in an attempt to keep rice prices low.
Cabinet approval will be sought next week by Trade Minister Bandula Gunawardena to impose a maximum retail price on four varieties – Nadu, Red Kekulu, Samba and Keeri Samba.
A gazette notification is due to be issued specifying the prices of rice after the required calculations are made, Minister Gunawardena said.
To ensure compliance with the price control gazette, the fine for violating the price control is being increased to Rs 100,000. The fine will be split between the trader and the supplier of the rice.
The decision to impose part of the fine on the supplier has been taken amid allegations that rice millers were forcing traders to sell the rice at higher prices.
Minister Gunawardena said they hoped to impose similar price controls on flour, sugar and chicken if the need arose.
However, the Government previously imposed a price control system on rice and was forced to cancel the gazette notification after traders started hoarding rice and selling stocks at higher prices.
Meanwhile, to meet an anticipated shortfall in rice in the next few months, the Government has called for tenders to supply 100,000 MT of rice.