brand logo

Mill owners to supply to Sathosa from today

13 Sep 2021

  • Rice should be supplied to the market and Sathosa at same prices
  • Farmers agitated by Govt.’s approach
By Buddhika Samaraweera Trade Minister Dr. Bandula Gunawardana has stated that the rice mill owners have agreed to supply stocks of rice to Lanka Sathosa outlets from today (13), following raids carried out in recent days in large scale rice mills in the Polonnaruwa area. Speaking during a programme on Derana TV, he further said that after the raids, a small quantity of rice hidden by the rice mill owners was handed over to the Government, and added that Trade Ministry Secretary Badrani Jayawardana is to send a letter to the rice mill owners today to obtain the remaining amount of rice. When queried as to whether the rice mill owners would be supplying rice to market at the same price at which they would supply them to Sathosa, Dr. Gunawardana said: “Rice should be supplied to the market at the same prices as rice supplied to the Sathosa outlets. Today, Kekulu rice is being sold in the market for less than the fixed price imposed by the Government.” He further stated that if the President or the Cabinet of Ministers say that the price of rice in the market is high, it is possible to import a stock of rice as a security stock within a period of two weeks. “If the President or the Cabinet says that the price of rice is too high, rice can be imported as a security stock within two weeks or so. A cabinet paper has been submitted to that effect too,” he said. When asked how much a kilogramme of “ponni” rice would be in an event of such an import, he said that it can be sold at around Rs. 95.  He also claimed that the Government has now taken steps to break the rice mafia in the country.  “I don't think all traders are involved in this. There is a certain group that tries to earn as much profit as possible in any situation,” he said. Meanwhile, when the Office of the Commissioner General (CG) of Essential Services was contacted by The Morning to inquire whether the raids to seize the hidden stocks of rice in the warehouses would continue, an official there said that matters pertaining to the raids should be inquired from the Consumer Affairs Authority (CAA). The Essential Services CG’s Office, according to said official, is only receiving complaints from the public. However, when contacted by The Morning to inquire about the matter, the Co-operative Services, Marketing Development, and Consumer Protection State Ministry Secretary D.S. Ruwanchandra said that the CAA does not have the authority to conduct raids. “Usually it is the CAA that receives public complaints. It has no power to seize goods or carry out raids,” he said. Meanwhile, farmers in several areas expressed their displeasure to the Government for taking over stocks of rice from rice mills in this manner. Addressing a media briefing yesterday, the farmers pointed out that despite the Government pressuring businessmen to buy a kilogramme of paddy for around Rs. 50, it costs between 60 and 65 rupees to produce a kilogramme of paddy. “If the Government had not intervened, we would have sold a kilogramme of paddy for about 60 rupees,” they said. They further alleged that mill owners have stopped buying paddy, as the Government has taken steps to search for stocks of paddy in possession of mill owners: “Now the paddy should be kept at home. Mill owners do not buy them and we have been compelled to keep them at home.” The CG of Essential Services Maj. Gen. M.S.P. Nivunhella recently seized nearly 1,000 metric tonnes (MT) of rice stored in large scale rice mills in the Polonnaruwa area last week and warned that he would not hesitate to take stern action if large scale rice traders continue to challenge the Government.  A group including Nivunhella and officials of the Consumer Affairs Authority (CAA) visited the rice mills in the Polonnaruwa area on 8 September took steps to seize rice stocks after which they were released to Lanka Sathosa outlets island wide.  Accordingly, around 400,000 kilogrammes of rice from Araliya Rice Mills owned by Dudley Sirisena, the brother of former President Maithripala Sirisena; 100,000 kilogrammes from Nipuna Rice Mill owned by State Minister of Canals and Common Infrastructure Development in Settlements in Mahaweli Zones Siripala Gamlath; 175,000 kilogrammes from New Rathna Rice Mills; and 75,000 kilogrammes of rice from Lathpandura Rice Mills were seized by the Government.  According to sources, the total amount of rice seized by the Government from such large-scale rice mills in the Polonnaruwa area is around 1,000 MT. However, as per the data from the Ministry of Agriculture as of March this year, the daily requirement of rice in the country is around 6,411 MT. 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 by in turn charging exorbitant prices for them, after which Nivunhella was appointed as the CG. 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 CG does not have the authority to instruct officials such as District Secretaries. However, the President’s Secretary Dr. P.B. Jayasundara has later pointed out that the CG has 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.  


More News..