The Hon. Wasantha Samarasinghe

¶ 01 Hon. Member, you approached the question broadly; I will answer accordingly.

¶ 02 Yes, while rice sold at Rs. 220, 230 and 240, traders exploited a perceived shortage and overcharged consumers. I can table records: in recent days the CAA has raided across districts—Dambulla, Colombo Fort, Badulla, Hambantota, Matara, Galle, Ratmalana, etc.—and apprehended those selling above MRP. Anyone selling above MRP in any town will be prosecuted. Exploiting shortages is unacceptable.

¶ 03 The Hector Kobbekaduwa Agrarian Research and Training Institute provides costings to guide farm-gate price decisions. Considering those, the Government set the purchasing price. The Government provides fertilizer subsidies; farmers also bear their costs and need income during the two to three months without earnings. Therefore, as State Minister Namal Karunaratne stated, an additional one-third component for farmer overheads is included, leading to a PMB purchase price of Rs. 120 per kg of paddy.

¶ 04 Typically, 1.6 kg of paddy produces 1 kg of rice. At Rs. 120 per kg of paddy, the raw paddy cost per kg of rice is Rs. 192. Large millers’ conversion cost is about Rs. 30 per kg (often Rs. 28); medium millers about Rs. 21; small millers handling 10,000–15,000 kg/day about Rs. 15; and very small (around 5,000 kg/day) about Rs. 8. Additionally, millers earn from by-products—bran (hunu sahal), rice polish, husk (wee saha dahaiya); for example, husk sells around Rs. 11/kg—offsetting costs.

¶ 05 Therefore, we can maintain an MRP of Rs. 230 per kg retail. In wholesale, we have offers below Rs. 230. This week’s Lanka Sathosa tenders have received substantial rice volumes. While there was market play exploiting perceived shortages, the Government intervened and the CAA is enforcing compliance. Going forward, those selling above MRP will be apprehended to protect consumers, while ensuring fairness to farmers.