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Govt.’s free distribution of rice to 2.5 mn people costs Rs. 10bn
View(s):By Nathara Abeywickrama
The Government is spending about Rs 10 billion for the free rice distribution programme for low income families, a senior official of the Social Empowerment Ministry said.
The rice is being distributed to 2.85 million families for the months of April and May.
The Government has converted paddy purchased from farmers during the Maha season into rice for this distribution programme.
The free distribution of rice began on March 27. The Govt. is spending Rs. 10 billion to purchase 61,600 metric tons of paddy from farmers at Rs. 100 a kilo to produce 40,000 MT of rice. The rice is being produced by small millers in paddy growing districts especially from Hambantota.
Rice being distributed in Eravur. Pic by M.G.A. Nasser
The Finance Ministry decided to purchase paddy through District Secretaries and Divisional Secretaries instead of the Paddy Marketing Board. The distribution of free rice is part of the government’s 2022/23 Maha season rice purchase and rice stock disposal programme which was implemented with a forward motion by President Ranil Wickremesinghe.
“The rice is being distributed among the identified Samurdhi beneficiaries including low-income earners, senior citizens, differently-abled communities. The Ministry of Women, Child Affairs and Social Empowerment will be working with the District Secretaries,” Social Empowerment Ministry Additional secretary R.M.P. Rathnayake said.
The rice will be distributed to 2.85 million low-income familieswith 10kilograms of rice neing distributed to each family.Initially, the estimated number was two million families but later it widened to 2.85 million families.
“The total estimated cost is Rs. 8,040 million — 6,200 million for paddy purchase, 290 million for rice drying, 590 million for milling charges, 200 million for packing costs, and 160 million as additional payments to mill owners and 600 million for transportation,” he said.
“Enough paddy stocks have been purchased for both months and we hope to wind up the distribution for April before the Sinhala and Tamil New Year.
“Given the country’s monthly rice requirement of approximately 210,000 metric tons, it has been observed that the next Maha season may see a paddy surplus. As a result, in order to protect both the paddy farmer and the consumer, the Government must intervene in the purchase of a specific amount of paddy during the 2022/23 season,” Mr. Rathnayake added.
“The “Sahana sahal” have already been distributed to 50 percent of the identified families. The distribution will take place in several districts including Colombo, Gampaha, Kalutara, Kandy, Ratnapura, Galle, Matara and Hambantota as per the requests,” Colombo District Secretary K. G. Wijesiri said.
Fifty two percent of the families living in Hambantota district have requested free rice. Although large-scale development activities were carried out in Hambantota district and a large number of farmers in the district cultivated paddy, 52 percent of families have requestedsubsidisations, he pointed out. The distribution of free rice to low-income families in Hambantota district took place on March 27 at Angunakolapelessa and Weeraketiya.
In 2020/2021 the country’s paddy harvest was 1,862,901 metric tons, down from 3,061,394 in 2020.
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