Former Agriculture Minister Mahinda Amaraweera has accused importers of exploiting government policies by smuggling basmati rice, green peas, peanuts, and Udu under the guise of Nadu rice imports. Speaking to the media, Amaraweera alleged that unscrupulous traders are importing other grains disguised as Nadu rice and stockpiling them in warehouses.
The minister highlighted the significant tax disparity, pointing out that basmati rice imports are subject to a high government tax. However, by mislabeling basmati as Nadu, traders were able to pay a reduced import tax of just Rs. 65. “This fraudulent practice has not only flooded the market with imported basmati but also led to a sharp decrease in prices of grains like green gram and peanuts,” Amaraweera stated.
Amaraweera also criticized large-scale traders for repackaging these imported stocks and selling them at inflated prices, adding to the woes of the rice industry. He accused the government of failing to effectively manage the country’s rice supply, which has led to rising prices and market manipulation.
The former minister emphasized that there is no real shortage of red raw rice, claiming that vast stocks are hidden in paddy mills and are being secretly sold at premium rates. He recalled that during his tenure as Agriculture Minister, the price of a kilo of rice was maintained below Rs. 170, with rice being distributed at affordable prices to low-income earners. Both red and white rice were made accessible to the public, preventing any major rice shortages.
In closing, Amaraweera expressed confidence in his ability to locate the hidden red rice stocks and expose those responsible, should the need arise. He urged the government to take swift action against fraudulent traders to stabilize the market and protect consumers.