The Hon. Wasantha Samarasinghe

¶ 01 Hon. Member, last year paddy at Rs. 80–90 yielded rice at Rs. 230–240; at Rs. 120 this year, rice would be around Rs. 300. When we took over, Government stores had no rice or paddy; the harvest was short. We were advised by Agriculture and line agencies, and the President, not to import rice. But the Consumer Affairs Authority recommended importing 70,000 MT due to shortage. We imported 186,000 MT rice, yet issues remain. The expected Maha harvest was 2.98 million MT paddy; now, due to weather and floods, it is about 2.4 million MT. If shortages hit the market, the Government will have to import to ensure supply.

¶ 02 We said clearly we would not import rice unless there is a natural calamity or disaster. With an expected shortfall of about 500,000 MT, we will not allow prices to exceed controlled levels. To stabilize the situation, we have arranged Rs. 10 billion in loans via State banks for small and medium millers, and Rs. 15 billion for large millers—expected to rise to Rs. 45 billion—so smaller millers can enter the market, easing prices. Harvesting in Anuradhapura, Polonnaruwa, and Ampara has begun; we will purchase paddy at controlled prices as the harvest comes in.