• Trade, Commerce, Food Sec. Min. accuses them of exploiting usual Oct.-Nov. shortage, decision to import yet unimplemented
• PMB to buy Yala crop in P’naruwa, A’pura, Trinco, Rs. 5,288 m already spent in 16 Districts to buy 43,891 MT
• Rs. 7,000/MT for fire-hit Sevanagala sugarcane farmers 
• SJB claims Govt. response to paddy farmers ‘counterproductive’ 

The Ministry of Trade, Commerce, and Food Security claimed yesterday (16) that large-scale rice mill owners are attempting to exploit the usual shortage of Keeri Samba rice that emerges in October and November by raising prices above the Government’s maximum retail price (MRP).

Speaking to The Daily Morning, Deputy Minister of Trade, Commerce, and Food Security, R.M. Jayawardhana said that Keeri Samba production was lower last year (2024), and that the stock was purchased mainly by large-scale mill owners. He added that at present, small- and medium-scale millers do not have Keeri Samba stocks in their possession. 

“We said that a kilogram (kg) of Keeri Samba paddy should be purchased at Rs. 132. But, they (large-scale mill owners) bought it at prices like Rs. 170–175. At those prices, it became impossible for them to sell a kilo of rice at the Government’s set price of Rs. 260. They have therefore been trying to sell Keeri Samba rice at higher prices. Now, they are misusing the usual Keeri Samba shortage that arises in October and November to sell rice at higher prices,” he said.

He added that while the Government has already decided to allow the import of Keeri Samba to ease the shortage, the said decision is yet to be implemented.

Rice wholesalers in Pettah recently said that they are refraining from selling Keeri Samba rice because producers are supplying it to them at prices higher than the control price of Rs. 260. As a result, retailers are also holding back from selling the variety.

In response to the situation, the United Rice Producers’ Association has called on the Government to remove the MRP imposed on Samba and Keeri Samba rice. However, the Sri Lanka Small- and Medium-Scale Paddy Mill Owners’ Association has opposed the move, alleging that large-scale mill owners are attempting to create an artificial shortage and profit from it.

Meanwhile, the Cabinet of Ministers has approved the proposal to obtain additional provisions to implement the purchase of paddy from farmers in this year’s Yala season under the controlled prices announced by the Government. Accordingly, the Government has allocated Rs. 6,000 million for the programme to purchase paddy for the Yala season, and the Paddy Marketing Board (PMB) has already purchased 43,891 metric tons (MT) of paddy, using Rs. 5,288 million in 16 districts. Therefore, the PMB has planned to purchase the paddy from the Polonnaruwa, Anuradhapura, and Trincomalee Districts, where the harvesting is still going on. Accordingly, the Cabinet has approved the proposal presented by the Minister of Agriculture, Livestock, Land, and Irrigation to obtain the additional provisions to implement the purchase of paddy from the farmers in the Yala season under the fixed prices of the Government.

Moreover, the Cabinet has granted approval to the proposal to provide compensation of Rs. 7,000 per MT for sugarcane destroyed by the fire at the sugarcane plantations in Sevanagala. It has been reported that some individuals have allegedly set fire to the sugarcane plantations of the Sevanagala Sugar Factory that belongs to the Lanka Sugar (Private) Limited on 16, 20-22, and 24 August and 4-5 September this year. 

It has been estimated that approximately 19,000 MT of sugarcane that belong to 235 farmers have been destroyed or damaged due to this. Since the fire affected sugarcane should be ground only within the first 24 hours, the purchase and grinding of the fire-hit sugarcane had been winded up on 30 August. Due to this, there has been unrest among the sugarcane farmers, and therefore, the Government’s attention has been drawn to compensate them financially for the devastated crops. Accordingly, the Cabinet granted approval to the proposal jointly furnished by the President in his capacity as the Minister of Finance, Plan Implementation and Economic Development and the Minister of Industries and Entrepreneurship Development to appoint a committee comprised of officials from the Sugarcane Research Institute and the Lanka Sugar (Pvt.) Ltd. to obtain information on the precise extent of sugarcane area devastated by the fire and the number of farmers whose crops were devastated and to compensate those farmers with Rs. 7,000 per MT of sugarcane destroyed by the fire.

However, the main Opposition, the Samagi Jana Balawegaya (SJB), alleged that the Government has not succeeded in providing acceptable solutions to the ongoing protests and that the Government should therefore pay attention to providing sustainable solutions to them. SJB Parliamentarian Dr. Kavinda Heshan Jayawardhana stated this during a press briefing held yesterday in Colombo. He pointed out the ongoing union action by farmers, teachers and Ceylon Electricity Board employees. “The Government has ignored the country’s needs and the people’s hunger. Oppression has been in place since the Government came to power and we have been losing the freedom for democracy,” he said. 

Among the key matters discussed by Dr. Jayawardhana was the Government’s response to the farmers’ demands. He opined that the Government’s response was counterproductive: “The Government said that it will reduce rice prices and will stop the importation of rice,” he said, claiming that the Government is enforcing the law against small-scale rice millers while giving more freedom to large-scale rice millers.