Instead of taking action against relevant District Secretaries (DS) and rice millers regarding the disappearance of 5,684 metric tonnes (MT) of rice produced by using Government-purchased paddy, and such rice having been sold to the private sector at high prices during the period of 2019-21, the Ministry of Finance, Economic Stabilisation and National Policies has sought the approval of Cabinet of Ministers to recover the value of relevant quantities of rice from millers at a rate of around Rs. 96 per kilogram, and to grant a grace period until 30 June 2023 for the relevant payments to be made.
The relevant Cabinet memorandum dated 24 January 2023, and signed by President and Finance, Economic Stabilisation and National Policies Minister Ranil Wickremesinghe, which was seen by The Daily Morning, states that a discussion was held between the DSs of the Polonnaruwa, Ampara, Puttalam and Trincomalee Districts and Finance, Economic Stabilisation and National Policies Ministry and Treasury Secretary Mahinda Siriwardena on 2 December 2022 regarding the recovery of payments related to the stocks of rice produced from paddy purchased under the aforesaid programme, which are not currently in warehouses.
It states that due to adverse situations such as the Covid-19 pandemic in the country, some rice millers have not been able to supply the rice stocks as scheduled, and it was revealed that the rice stocks were currently not available in the warehouses. The concerned DSs have informed the Ministry and Treasury Secretary during the discussion that rice millers have expressed their willingness to pay money for the rice stocks which have gone missing, and that they have requested to implement a concessional programme for the same.
The Cabinet memorandum states that a total of 5,684 MTs of rice worth Rs. 553 million including 4,065 MTs of rice worth Rs. 396 million in the Polonnaruwa District, 1,429 MTs worth Rs. 138 million in the Puttalam District, 1,429 MTs worth Rs. 11 million in the Trincomalee District, and 89 MTs worth Rs. 8 million in the Ampara District produced using paddy purchased under the said programme have gone missing, which means that they are not in warehouses, nor have they been sold to Lanka Sathosa.
Accordingly, it has been decided during the discussion to recover the payments with regard to the above quantities of rice from the relevant rice millers at the prices specified in the relevant circulars issued by the Treasury during the cropping seasons (around Rs. 96 per kilogram) – 2019/20 Maha, 2020 Yala, 2020/21 Maha and 2021 Yala - in which the purchase programme was implemented. The Cabinet memorandum also states that it has been decided to grant a grace period to the small and medium scale rice millers until 30 June to settle the arrears, and to take legal action against those who fail to do so within that period.
Although the Finance, Economic Stabilisation and National Policies Ministry is seeking Cabinet approval to recover the payments with regard to misplaced stocks of rice at a price of around Rs. 96 per kilogram, The Daily Morning, citing the United Rice Producers' Association (URPA) President, reported earlier that these stocks have been sold to the private sector at high prices ranging from Rs. 200 to Rs. 250 in May and June 2022 under the knowledge of the relevant DSs. He also claimed that the Polonnaruwa, Puttalam and Trincomalee DSs were preparing to settle Rs. 96 per kilogram to the Treasury for that stock of rice through which the Treasury would lose an income of more than Rs. 512 million.
The Presidential Secretariat had issued a circular number PS/EPC/06/2020 related to the purchase of paddy from farmers through DSs and small and medium scale rice millers during the 2019/20 Maha season. Circular No. DFD/Yala/2020/01 related to the purchase of paddy during the 2020 Yala season had been issued by the then Finance Ministry and Treasury Secretary S.R. Attygalle on 31 July 2020. In addition, circulars related to the purchase of paddy under this programme during 2020/21 Maha and 2021 Yala seasons had been issued by the Finance Ministry and Treasury.
Under this programme, a total amount of 40,511 MTs of paddy had been purchased including 23,998 MTs purchased in the 2019/20 Maha season including 11,239 MTs from Polonnaruwa, 3,351 MTs from Puttalam, 1,773 MTs from Trincomalee and 1,256 MTs from Ampara, 5,344 MTs in the 2020 Yala season including 2,989 MTs from Polonnaruwa and 2,168 MTs from Puttalam, 6,001 MTs in the 2020/21 Maha season including 3,164 MTs from Polonnaruwa and 1,992 MTs from Puttalam, and 5,168 MTs in the 2021 Yala season including 3,466 MTs from Polonnaruwa and 1,549 MTs from Puttalam.