Anuradha Tennakoon, Chairman of the Farmers’ Union, has criticized rice importers for making substantial profits by selling Nadu rice imported from India at Rs. 220 per kilo, despite the possibility of selling it for Rs. 150.
Tennakoon pointed out that a kilo of Nadu rice can be purchased in India for Rs. 85-90 in local currency. After accounting for shipping, taxes, and other costs, the rice could still be sold in Sri Lanka at Rs. 150, leaving room for fair profit margins. However, importers are selling it at Rs. 220, capitalizing on the current demand and reaping excessive profits.
He urged the government to step in and recapture the excessive profits made during the import process, particularly if such pricing is justified as a measure to “protect the local farmer.”
Tennakoon also revealed that large mill owners continue to hold significant stocks of paddy purchased from farmers for around Rs. 100 per kilo, contrary to claims that they were purchased at Rs. 130. This discrepancy raises questions about the motivations behind recent rice imports and the ongoing price hikes.
Highlighting the lack of oversight, Tennakoon criticized the Consumer Affairs Authority (CAA) for failing to maintain accurate records of domestic paddy and rice stocks during the last harvesting season. He argued that this negligence enables large mill owners to manipulate the market and create artificial shortages.
He urged the current government to maintain transparency and robust record-keeping to curb market manipulations and ensure that both local farmers and consumers are treated fairly in the rice supply chain.
Farmers and consumer advocates are calling on the government to regulate rice prices and introduce stricter monitoring mechanisms to prevent profiteering and ensure affordability for the public.
