News
Rice shipped in low volumes to dozens of countries
View(s):By Kapila Bandara
Sri Lanka shipped rice processed in different forms worth millions of rupees to dozens of countries in 2023, a period when paddy production exceeded 4.5 million metric tonnes, estimated to be enough to meet local demand for some 13 months.
Export volumes of milled, semi-milled, and ‘broken rice’ are generally in the thousands of metric tonnes. In 2023, Maha and Yala paddy production was 4.51 million MT, based on data from the Department of Census and Statistics, Department of Agriculture, and Hector Kobbekaduwa Agrarian Research and Training Institute, cited by the Central Bank of Sri Lanka.
As is widely known, the Maha harvest (more than 60% of annual production) is greater than the Yala crop (May-August), and in 2003, the Maha (October-March) production was 2.7 million MT, while Yala harvest was 1.82m MT.
Minister of Trade, Commerce, Food Security and Cooperative Development Wasantha Samarasinghe, cited the 2023 and 2024 paddy production figures in Parliament this week, but before that, the Committee on Public Finance was baffled by paddy and rice volumes when officials reported the Maha forecast. An official told the panel “2.639m MT rice’’ is forecast for Maha.
Minister Samarasinghe said the 2023 rough rice production was 4.51 million MT. “In Maha 2.6m MT and in Yala 1.81m MT. In 2024, Maha 2.6m MT and Yala 2.3m MT. Total 4.9m MT. This is then processed into 2.5m MT of rice.’’
The 2024-25 Maha output is estimated at 6% below the five‑year average due to flood damage, disease, and crop pests. Production is expected to be 2.2m MT, the December forecast by the Department of Agriculture shows. The costs of free irrigation, subsidised fertiliser etc., are borne by public funds.
In December, the CBSL cited the forecast for 2024 Yala paddy, based on extent sown by September 2024, as 2.02 million MT, an 11.4% increase from the previous Yala. By end July 2024, the forecast had been 1.80m MT.
From successive governments, paddy and rice stocks figures have been nearly non existent and private hoarding accusations proliferated. Prices have surged since October 2021. Prices climb in September and peak in December-January before easing. In 2020, the maximum retail price for white Nadu rice was Rs. 98 per kg.
In 2023, Sri Lanka’s exporters shipped 366,200 kilos of ‘broken rice’ (HS Code 1006 40) worth US$368,790 (Rs 109.79 million), a World Bank global trade database shows.
Also, shipments of semi-milled or wholly milled rice (HS Code 1006 30) were worth US$6,831. The volume was 7,558 kilos. Canada was the biggest buyer, importing 1,363kg worth US$1,195, ahead of India, which took delivery of 1,747kg worth US$870.57.
Shipments went to Europe, Nordic region, North America, South Asia, Southeast Asia, and southern hemisphere.
‘Broken rice’ (fragments of rice grains), cargoes were likely meant for pet food, for which it is commonly used, and for livestock. It is also used in brewing.
The European Commission classifies it as a lower quality product used for baby formula. It is used for pet food, rice cereals, rice flour, and rice wine as well as pre-packaged, or canned products.
If 366,200kg were packaged in 5 kilo non-woven fabric bags, it would be more than 73,000 packs.
The bulk of the damaged white rice loads, or 125,000kg, was shipped to India and was worth more than US$73,000, based on the global trade database.
Exports went as far as the Nordic region. To Denmark, exporters shipped 4,100kg (US$5,750), and to Norway, 8,696kg (US$11,910).
United Arab Emirates took delivery of 22,730kg (US$24,000).
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