News
Govt. optimistic of solving rice scarcity, but retailers see it differently
View(s):By Kasun Warakapitiya
The government says it has put into operation a multi-prong approach to maintain the availability of rice, but retail market traders say they are yet to receive sufficient stocks.
Retailers say they are finding it difficult to maintain profit margins as they can only make a five-rupee profit with the newly gazetted maximum retail price (MRP). Since it is a loss for them, they say they have stopped selling rice.
Meanwhile, Consumer Affairs Authority (CAA) Chairman Hemantha Samarakoon said they are carrying out market raids to see if rice is being sold according to the controlled prices.
Raids being conducted by CAA officers. Pix by Eshan Fernando and Nimal Jayaratne
He said since the issuance of the new maximum control prices (MRP) on Tuesday, they have stepped up raids and detected 200 instances of rice being sold above the MRP. He said legal action would be taken against them.
He said that according to the presidential directive, two officers have been deployed at main rice mills to monitor that the production of rice is maintained without interruption and reaches the market.
Meanwhile, a consumer affairs authority official who declined to be named said that officials have been deployed to nine main rice mills in Polonnaruwa, which provide around 25 percent of the total daily rice requirement. He said out of the nine mills, two are providing rice to Lanka Sathosa.
He said large millers had given an assurance to the president during a meeting last Saturday that they would provide 25,000 kg of rice to Lanka Sathosa outlets.
Lanka Sathosa Chairman Dr. Samitha Perera said their outlets are receiving around 100 to 150 MT of rice daily from main millers.
Further, he added that they have also opened two more tenders to import rice.
The imports through the Sri Lanka State Trading Corporation (STC) would reach the country first, followed by imports by LSL.
He said governments of the past also faced similar issues from September to December due to market pressures for price hikes. This is mainly due to inadequate paddy or rice stocks to mitigate the manipulated supplies to the market.
“At this juncture, the only tool to control the market price is enforcement of maximum price for rice and paddy through a gazette and careful importation of rice, protecting the farmer as well as the consumer. One could argue why the private sector could not do this. But the reality is far beyond the market equilibrium for obvious reasons,” he said.
“In this context, while managing the current situation, the government plans to launch effective long-term initiatives such as revamping abandoned CWE and PMD stores to hold more government-owned stocks to intervene in the market supply crisis,” he said.
He emphasised the need for a national action plan that would settle the issue permanently.
Meanwhile, importers told the Sunday Times that the rice imported by them was being cleared.
Customs sources said that they have released 90 percent of the 2400 MT of rice imported by the private sector.
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