Johnston warns imported rice price will be reduced to tackle hoarding

Wednesday, 26 November 2014 00:40 - - {{hitsCtrl.values.hits}}

Minister of Co-operatives and Internal Trade Johnston Fernando yesterday asserted that the Government would reduce the selling price of imported rice if suppliers continue to hoard rice and limit the supply in the market. Addressing the Annual Convocation of the Association of Accounting Technicians (AAT) at the BMICH yesterday, Fernando charged that the suppliers were creating a shortage in the market to increase prices during the run-up to the presidential election. According to the Ministry of Co-operatives and Internal Trade, the current control price of Samba is Rs. 77 per kg, White Nadu is Rs. 68 per kg and Red Nadu is Rs. 66 per kg.

From left: CA President Arjuna Herath, Co-operatives & Internal Trade Minister Johnston Fernando and AAT President Lalith T. Fernando “We have enough of rice here. We will never allow the price of rice to be negatively affected. If suppliers attempt to control the prices in an unreasonable manner, we will issue imported paddy at Rs. 40 to 45 per kg,” the Minister stated. In 2013, total national paddy production increased by 20% over 2012, to 4.62 million metric tons. However, paddy prices declined during the second half of the year due to the bumper harvest during the Yala season. In the 2015 Budget, the Government proposed that the fertiliser subsidy scheme provide all varieties of fertiliser at Rs. 350/50kg bag to enhance paddy cultivation and also proposed guaranteed price of paddy at Rs. 34-40 per kg. Furthermore, it also proposed land rehabilitation programs focused on abandoned paddy lands, to use them once again for cultivation of paddy and other crops. Commenting on yesterday’s protests by red onion suppliers in Dambulla, Fernando said Sri Lanka’s production of red onions was the costliest in the world and as a result, selling prices were very high. The Minister pledged that the Government would take action to ensure a guaranteed price for red onions, at Rs. 60 per kg. “We can’t increase the prices because we must think of the customers as well. If we increase the price per kg to Rs. 80, the customers will protest,” he pointed out.