The Samagi Jana Balawegaya (SJB) has raised concerns over significant profits allegedly being made by large-scale rice mill owners, particularly those believed to have supported the National People’s Power (NPP). Speaking at a media briefing in Colombo, Mahesh Senanayake of the SJB accused mill owners of selling rice at Rs. 270 per kilo, resulting in a profit margin of Rs. 100 per kilo.
Senanayake criticized the government, stating that it has failed to ensure that consumers can purchase rice at a fair price of Rs. 230 per kilo. As the main opposition, the SJB claims to have the “backbone” to address the grievances of the people, highlighting that the government has not adequately intervened to protect consumers.
Citing figures from the Yala and Maha harvesting seasons, Senanayake explained that paddy was purchased for Rs. 80 to 105 per kilo, with 600 grams of rice produced from one kilo of paddy. He estimated that 1.5 kilos of paddy are required to produce one kilo of rice, which can be processed at a cost of Rs. 120 to 125. This calculation suggests that rice should be sold to consumers at Rs. 165 to 170 per kilo after accounting for a reasonable profit margin.
However, the SJB alleges that rice mill owners are exploiting the situation by securing large loans from state banks at low-interest rates of 4-5%, while there is little transparency regarding how the funds are used or whether paddy is actually purchased. The government, according to Senanayake, continues to facilitate these practices by offering favorable loan terms to large-scale rice mill owners.
The SJB has called for increased accountability and transparency to prevent what they describe as unfair profiteering at the expense of consumers. They argue that urgent measures are needed to ensure that rice is sold at a reasonable price, providing relief to the public amidst rising costs of living.
