Rice millers divided over government-imposed controlled prices

Animated Rice Millers Association President Dudley Sirisena and other representatives of rice milling industry at press conference
Pic by Nimalsiri Edirisinghe

The top rice millers in the country remain divided over the controlled prices imposed by the government on rice, with at least one of the largest rice millers asking the government to increase the maximum retail price (MRP) on Nadu by Rs.25, in order to avoid shortages in the market.

Rice Millers Association President Dudley Sirisena of Araliya fame and New Rathna Rice (Pvt.) Ltd owner L.J. Mithrapala during a media briefing held in Colombo yesterday engaged in a heated verbal spat and Sirisena nearly walked out of the media briefing at one point.

The heated discussion occurred following Mithrapala’s request on Rs.25 increase of the MRP on the Nadu rice, which he emphasised as necessary to cover the costs while allowing the traders to earn a fair profit. 

However, Sirisena continued to insist that the rice millers must release their rice stocks to the market in complying with the MRP imposed by the Consumer Affairs Authority (CAA), while also claiming that the vast majority of rice millers are ready to supply rice to the market at the controlled prices.

Justifying the need for increase in the Nadu prices, Mithrapala claimed that the prices of Nadu paddy have risen when compared with the Keeri Samba paddy, due to the high demand as of late. Further, he pointed out that the other input costs have also increased by multifold from fertilisers to fuel.

However, Sirisena insisted that the millers and traders should be able to make a sacrifice for the people who are battered by the economic crisis by giving up their profit motives in this period.

Mithrapala warned that uneconomical price controls could lead to shortages and queues in the coming days, with a rice shortage is already looming in certain areas.

Araliya and Rathna focus on two market segments, with Araliya being a top producer of Keeri Samba while Rathna being a key producer of Nadu.

A representative speaking on behalf of the SME rice millers stressed that the government should have imposed the price controls on rice six months way before the harvesting period, instead of waiting until the last moment..