The Essential Food Importers and Wholesalers Association has appealed to President Anura Kumara Dissanayake to reduce the current import duty on rice from Rs. 65 per kilogram to Rs. 40, allowing for more affordable imports and easing the burden on consumers.
The association emphasized that a tax reduction would enable wholesalers to sell imported rice at a lower price, bringing much-needed relief to households amid rising living costs. According to their proposal, if the duty is reduced, imported rice could be sold at a wholesale price of Rs. 180 per kilogram, compared to the current higher rates.
The plea comes at a critical time, as traders report that the Pettah Wholesale Market, one of Sri Lanka’s largest distribution hubs, has only about a week’s supply of rice left. This dwindling stock is raising concerns about a potential shortage, especially as domestic rice production has been impacted by adverse weather conditions and rising input costs.
Importers argue that reducing the tax would stabilize the rice market and prevent a price surge in the coming weeks. They claim that the current duty of Rs. 65 per kilogram, implemented to protect local farmers, is now contributing to higher retail prices and limited availability of rice in urban and rural areas alike.
“By lowering the duty to Rs. 40, we can ensure a steady supply of affordable rice in the market, benefiting both traders and consumers,” said a spokesperson for the association.
The government has yet to respond to the request, but economic analysts suggest that any decision will need to balance the interests of local farmers, who benefit from import protection, and the broader consumer base, which is struggling with high food prices.
As rice is a staple in Sri Lankan households, the outcome of this request could have significant implications for food security and inflation in the coming months.
