News
Rice import ban too late for farmers suffering price collapse
View(s):By Senuka Jayakody
Farmers who had stocked paddy expecting higher prices during the festive season are having to deal with falling prices instead, due to an abundance of imported rice, mostly from India.
Agriculture Minister Mahinda Amaraweera, after discussions with President Ranil Wickremesinghe, has requested a ban on rice imports. The President had agreed and asked the Senior Advisor, Dr. D.R.S Samaratunga to issue a gazette notice.
“Prices usually increase due to festive activity to Rs. 200, but the abundance of imported rice has caused prices to drop, even below the Paddy Marketing Board purchase price of Rs. 120,’’ said W. H. Duminda Priyadarshana, a senior research officer of the Hector Kobbekaduwa Agrarian Research and Training Institute.
The Yala season yielded around 1.4 million metric tonnes of paddy, although 1.6 million MT was estimated. The Paddy Marketing Board did not have funds and bought just 7,100 MT.
A normal Maha season harvest of 3 million MT is expected this Maha season as rain was sufficient and 95% of the fertiliser needs were met with funding from the United States, USAID, UN agencies such as the Food and Agriculture Organization, and the World Bank.
From the harvest, farmers keep 5% to 10% for seeds, 15% to 20% for their own consumption, 40% to 50% is sold, and around 25% is stored. Paddy is also stored by intermediaries and around 30% to 40% of the Yala harvest is expected to have been stored.
The price of rice increases during the festive period, when the farmers expect a price of Rs. 200, compared with Rs. 120, the PMB offered in August.
Farmers now have no choice but to sell paddy at lower prices, Mr. Priyadarshana said.
All Island Farmers Federation secretary T. B. Sarath said that based on past experience, farmers had stocked paddy expecting higher prices during November and December. They expected higher demand during Christmas and the New Year.
“The instability of the Government has led to bad policy-making. Indian rice was imported and sold at lower prices, forcing businessmen to buy local paddy prices for as low as Rs. 85,’’ he said.
Mr Sarath said money had not been allocated to the PMB to purchase the Yala produce. Farmers sold paddy for between Rs. 100 and Rs. 105 per kilo.
“The minister did not have to wait until the Maha season to ban imports, the country already has enough rice. Actually, it is too late now,’’ he said. “The Government does not have proper statistics in the first place to implement policies. Statistics should be prepared by the Ministry of Agriculture. This has not been done.’’
Mudith Perera, the chairman of the United Rice Producers Association, said the price of rice has been falling. He expects a further drop with the Maha harvest of the North-East regions arriving in the middle of next month.
Rice is being imported for Rs.140 per kilo, he said. “If we were to sell rice at Rs. 140, we would have to buy from the farmer for around Rs. 70. But, since we know the suffering of farmers, we do not resort to such practices.’’
Mr. Perera also complained of Indian rice dominating 65% to 70% of the market, and that local rice cannot compete on price.
“This is a problem with Government policy. The Government had to decide between the farmer and the consumer, and gave priority to the consumer.’’ he said. However, the spokesman of the Essential Food Commodities Importers and Traders Association, Nihal Seneviratne said importers are also suffering losses due to low prices. “If the Government gazette actually ceases rice imports, it would be good.’’
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