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Government reads riot act to rice hoarders

10 Sep 2021

 
  • Essential Services CG warns of strict action against errant traders 
  • Maj. Gen. Nivunhella claims no problems in Sathosa rice supply  
  • 1,000 MT seized from large-scale P’naruwa millers  
  • Dudley Sirisena’s Araliya, Siripala Gamlath’s Nipuna, New Rathna, Lathpandura mills raided 
  • Bandula claims leading millers to sell nadu at Rs. 98, samba at Rs. 103
    BY Buddhika Samaraweera Newly appointed Commissioner General (CG) of Essential Services Maj. Gen. M.S.P. Nivunhella, in the wake of the Government seizing nearly 1,000 metric tonnes (MT) of rice stored in large-scale rice mills in the Polonnaruwa area as per the recently declared emergency regulations on essential items, warned large-scale rice traders of strict action against them if they continue to challenge the Government by hoarding and hiding stocks and selling at exorbitant prices above the control prices. These stocks were seized by a group, including Maj. Gen. Nivunhella and officials of the Consumer Affairs Authority (CAA), who took steps to release the seized stocks to Lanka Sathosa outlets islandwide. The rice stocks were seized in accordance with the powers vested with the Essential Services Commissioner General under Section 5 of the Public Security Ordinance to implement and co-ordinate all activities related to the supply of essential goods. Accordingly, around 400,000 kilogrammes (kg) of rice from the Araliya Rice Mill owned by Dudley Sirisena, brother of former President and incumbent Government Parliamentarian Maithripala Sirisena, 100,000 kg from the Nipuna Rice Mills owned by Development of Common Infrastructure Facilities of Settlements and Canals in Mahaweli Zones State Minister Siripala Gamlath, 175,000 kg from the New Rathna Rice Mill, and 75,000 kg from the Lathpandura Rice Mill were seized by the Government. It was also revealed that the Polonnaruwa New Rathna Rice Mill had about 40 million kg of paddy in their stores by 8 September, but that only 60,000 kg of rice had been released to the market on 6 and 7 September. However, media personnel were not permitted to go into the Araliya and Nipuna Rice Mills. Further, The Morning contacted the office of the Essential Services Commissioner General to inquire as to whether raids were also carried out yesterday to seize rice stocks, and an official there, in response, said that raids were not carried out yesterday. When questioned as to whether there is any targeted amount of rice that would be seized by the Government, he said: “Such information cannot be divulged at the moment. When it is possible, we will inform.” While nearly 1,000 MT of rice were seized from large-scale millers in Polonnaruwa, as per the data from the Agriculture Ministry as of March this year, the daily requirement of rice in the country is around 6,411 MT. Maj. Gen. Nivunhella also told the media that well-known rice traders in Polonnaruwa supply as little as 16% of Sri Lanka’s rice demand, most of which is samba and keeri samba rice, adding that the Government is confident about the remaining 84% of the rice supply. Although there has been a problem with the supply of rice in the last few days, with the receival of rice by Lanka Sathosa, there is no such problem at present, he claimed. Meanwhile, a group of Buddhist monks and farmers in the area protested against the Government for taking over stocks of rice from rice mills in this manner. Addressing a media briefing yesterday (9), Ven. Dimbulagala Rahulalankara Thera claimed: “We saw emergency legislation being passed in the Parliament. What happened was like a terrorist group breaking into rice mills and looting. This is not something that we expected in a democratic country.” He also said that if the rice traders are not protected, the farmers would have to face various hardships as a result. “If they continue to act in this manner by seizing the rice from mills, we will formulate a programme under the leadership of the Buddhist clergy to respond together,” he further warned. Representatives of several farmers’ organisations in the Polonnaruwa area, during a media briefing held yesterday, also expressed their protest against the Government taking over stocks of rice. They pointed out that despite the Government pressuring business folk to buy a kilogramme of paddy for around Rs. 50, it costs between Rs. 60 and Rs. 65 to produce a kilogramme of paddy. “If the Government had not intervened, we would have sold a kilo of paddy for about Rs. 60. No one in the country would say that the price of rice is too high,” they claimed. Meanwhile, Trade Minister Dr. Bandula Gunawardena, commenting on the matter yesterday, said that with the commencement of the cultivation this season, the leading paddy mill owners have agreed to sell nadu rice at Rs. 98 per kg and samba rice at Rs. 103 per kg. However, as the paddy mill owners stopped releasing rice to the market last week, actions were taken to procure the rice needed for Sathosa outlets from these mills, he added. President Gotabaya Rajapaksa, on 30 August 2021, declared emergency regulations on the provision of essential foods, with the aim of preventing market irregularities that could cause inconveniences to consumers owing to the concealing of stocks of essential food items including paddy, rice, and sugar, and in turn charging exorbitant prices for them, after which Maj. Gen. Nivunhella was appointed as the Essential Services Commissioner General. Subsequently, the emergency regulations prepared for the supply of essential food items was passed in Parliament on 6 September with a majority of 81 votes, where 132 voted in favour and 51 voted against. Also, during the debate on that day, the Opposition claimed that the Essential Services Commissioner General does not have the authority to instruct officials such as district secretaries. However, President’s Secretary Dr. P.B. Jayasundera had later pointed out that the Essential Services Commissioner General has the full authority to give instructions to the district secretaries, divisional secretaries, and other relevant officials in terms of Section 5 of the Public Security Ordinance However, claiming that the declaration of the emergency regulations by President Rajapaksa relating to the provision of essential foods in accordance with the powers vested in him under Section 2 of the Public Security Ordinance was an unwarranted act, Illankai Tamil Arasu Kadchi Parliamentarian and Tamil National Alliance Spokesman President’s Counsel (PC) M.A. Sumanthiran recently said that the President’s decision could lead to a state of repression in the country. In this backdrop, Justice Minister M.U.M. Ali Sabry PC on 6 September, said in Parliament that as the CAA Act No. 9 of 2003 as amended only enables setting a control price for goods and to initiate legal action against traders who sell goods beyond those control prices, the only way to provide the people with essential food items without any shortage is to enforce emergency regulations on the provision of essential foods under the Public Security Ordinance.


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