The Hon. Wasantha Samarasinghe - Minister of Trade, Commerce, Food Security and Cooperative Development

¶ 01 Hon. Deputy Speaker, Hon. D.V. Chanaka referred to a rice mafia. Yes, we acknowledge there is a rice market problem. For two weeks, the Government has been taking decisions and measures to respond swiftly to ensure rice reaches the market for consumers. Daily national demand for rice is around 6,500 metric tons. Evidence shows a shortfall. Although we have domestic production, rice is needed not only for human consumption; various other sectors also draw on rice and by-products. For instance, some volumes that are claimed to be for poultry feed are not actually allocated that way; so we must question whether we produced enough to meet total needs.

¶ 02 Last year, the country imported around 780,000 metric tons of rice. This year we had not started similar imports until now. To stabilize the current situation, we decided to allow import of 70,000 metric tons. Over the past 20 days, permissions were issued; we expect around 50,000 metric tons to actually arrive. Meanwhile, to counter hoarding you mentioned, we are moving 200,000 kg (200 metric tons) of rice per day into the market through Sathosa at Rs. 220 per kilo. This addresses around three percent of daily demand—only a short-term stabilizer until imports land and private stocks move.

¶ 03 Some traders tried to earn excess profits via price hikes and by withholding stocks. We must answer that. Our short-term steps are underway; long-term solutions are also required. Some people— including individuals who received loans and even those on certain national lists—have taken loans and are trying to form a rice mafia. I will present details tomorrow. Our Government will break that, ensure people are not burdened, and make rice available.