The Hon. R.G. Wijerathna

¶ 01 Hon. Presiding Member, at this Committee Stage debate on the Ministry of Trade, Commerce, Food Security and Cooperative Development, which profoundly affects people’s lives, I wish to present views.

¶ 02 This morning, our Hon. Minister referred to institutions under this Ministry. There are 15 such institutions. Some are in name only. For example, the Department of Food Commissioner—its activity is largely limited to letting a few buildings on rent. While many such inactive institutions exist, I wish within my limited time to present several ideas about Regional Economic Centres (RECs) that relate to producers and local economies. Over the past 20 years or so, about 18 RECs have been built; in reality, only about 14 operate to any extent; four are still inactive. Their objectives were stated and are laudable: to give fair prices to producers of agricultural and food products; provide marketing facilities for those unable to market regionally; establish a strong islandwide distribution network; and ensure consumers can buy at affordable prices. Let us examine whether these objectives have been realized.

¶ 03 First, four RECs are inactive, yet how much money was spent to build them? For example, Hon. Presiding Member, the Jaffna REC cost Rs. 198.82 million; the Vavuniya REC, Rs. 106.74 million; the Kilinochchi REC, Rs. 114.36 million. Around Rs. 500 million has been spent just on these three. What waste—none are active even today. Thus the true objectives have not been achieved.

¶ 04 As for those operating to some degree, let us consider performance. In Nuwara Eliya District which I represent, there is an REC with 138 stalls, yet only about 15 are engaged in wholesale trade in agricultural produce. Thus the objective has not been met. Around Nuwara Eliya—Kandapola, Meepilimana, Shanthipura—about 600,000 kg of vegetables are produced daily, yet the REC purchases only about 120,000 kg—roughly 20%. The remaining 80% is handled by private traders. There is no price regulation. About 15 traders at the Nuwara Eliya REC declare whatever price they wish each morning; the manager gathers their prices, publishes an average, and fixes the kilo price. But prices should be set by producers based on inputs and labour. Today the farmer has lost the right to determine the price of his own produce—grossly unfair.

¶ 05 Further, RECs are run through management trusts that hold large funds. In Nuwara Eliya, the fund is around Rs. 1,430 million. There is no proper oversight over how these funds are used to develop the centres. Therefore, what should be done? First, establish a strong islandwide distribution network through coordination not only by the Department of Trade but also with other Ministries. We are working to start such a network this year.

¶ 06 We must also address post-harvest losses in vegetables—over 30% is lost in transport. We aim this year to introduce modern scientific methods and proper management for transport and packaging.

¶ 07 Additionally, to examine transparency in the use of management trust funds, we intend this year to establish a special unit affiliated to the Ministry of Trade. By strengthening islandwide distribution, we can realize the true purpose of RECs: fair prices for farmers and affordable prices for consumers. We have plans under this Ministry this year to achieve this, and I urge collective support.

¶ 08 Thank you for the opportunity.