The Paddy Marketing Board (PMB) is set to purchase 300,000 MT of paddy to maintain a buffer stock aimed at managing potential shortages and stabilising rice prices, according to PMB Chairman Manjula Pinnalanda.

He told The Sunday Morning that the PMB, in collaboration with entities such as Sathosa and cooperatives, would procure the paddy to address supply issues and control price fluctuations. 

The stocks will be released during periods of shortage to ensure market stability, with the Government closely monitoring market conditions to make timely interventions.

He said that entities such as Sathosa and certain cooperatives were expected to procure paddy in collaboration with the PMB, forming part of the national stock to address shortages effectively.

When asked about how long the procured stocks would last during a shortage, Pinnalanda explained that it depended on several factors.

These include consumer demand, the 30% market share controlled by large-scale rice millers, and the remaining 70% managed by the PMB and small-scale rice millers.

Pinnalanda noted that during significant price increases, the release of a portion of Government stocks was sufficient to stabilise the market. 

“The goal is to maintain the normal market price rather than create fluctuations by increasing or decreasing prices,” he explained.

He also outlined plans to procure paddy from the Maha season, which concludes at the end of March, and from the Yala season, where harvesting occurs around July. 

Shortages are typically observed between September and November, during which the PMB plans to release stocks to stabilise supply.

When contacted, Ministry of Agriculture Secretary D.P. Wickremasinghe stressed that decisions to maintain paddy as a buffer stock or release it to the market depended on market conditions. “If there is an increase in rice prices, we can issue stocks to control it,” he said.

The primary task of the PMB is to fill the gap in the market by maintaining paddy as a buffer stock. The funds for this effort have already been allocated by the Treasury, according to Wickremasinghe.

Pinnalanda also disclosed that the certified price of paddy had not been declared yet as the harvesting process was not complete.

The paddy obtained in this manner is to be stored as part of the Government’s reserves to be distributed to the market only in the event of a rice shortage.

The PMB, established under Act of Parliament No.14 of 1971, plays a crucial role in ensuring market stability and balancing paddy production. 

– By Michelle Perera