The Hon. Wasantha Samarasinghe

¶ 01 Hon. Deputy Speaker, I am glad to note the Hon. Leader of the Opposition visits fields. Pricing is not set by officials alone; farmer organizations and stakeholders also participate to derive per-acre and per-kg costs, which change with inputs like fuel, tractor hire, fertilizer and labour. The derived prices have about 95% accuracy.

¶ 02 Accordingly, the guaranteed prices — Rs. 120/kg for paddy and Rs. 102/kg for moist paddy — reflect moisture loss after drying (from 100 kg moist to about 82–85 kg dry), arriving near Rs. 120/kg equivalence, which is favorable.

¶ 03 On the supply chain: issues exist between procurement and consumer retail. PMB stores were limited, forcing reliance on private storage. Of 2.7 MMT rice output, allied industries (poultry, eggs, etc.) absorb significant paddy when maize prices rise — roughly 300,000 MT recently. Another 18,000–20,000 MT go into rice flour, beer and other products. Population growth and dietary shifts also matter. We are intervening in the chain through the mechanisms already presented. The Government has provided Rs. 40 billion seasonal credit to the private sector to buy paddy. We instructed banks to facilitate even CRIB-listed small and medium millers to renegotiate and obtain facilities; new modalities are being designed to lend to those with adverse listings.

¶ 04 On imports: decisions are taken only when market supply is inadequate. Keeri Samba remains problematic: though over 80,000 MT are in stores, market prices reach Rs. 300/kg. Sathosa and supermarkets sell at Rs. 260/kg, as evidenced by their tax-declared sales. We are engaging the Consumer Affairs Authority to enforce and stabilize the rice market, considering your suggestions.

¶ 05 Thank you.