Committee recommends import of rice to maintain stocks

• The committee also recommends purchasing of a maximum  30,000 MTs of paddy from the current Yala season at a fixed price and  obtain a loan of Rs. 2 billion for the purpose from state banks

By Sandun A. Jayasekera  

An official committee appointed by the cabinet to study the  domestic rice market and submit recommendations to the cabinet in order  to maintain ample stocks of rice in the domestic market, has  recommended importing 210,043 metric tons of rice for this year and for January 2023.  

The four-member committee chaired by former Treasury  Secretary and senior economic advisor to President Ranil Wickremesinghe,  Dr. R.H.D. Samaratunga has assessed that Sri Lanka would produce a total  of 18,33,000 MTs of rice in the country – 1,160,900 in Maha and  672,100 in Yala seasons.  

This means Sri Lanka is short of about 600,000 MTs this  year as Sri Lanka’s annual rice requirement is 2.4 million at two  million MTs per month.  

The country has already imported 506,957 MTs of rice and  therefore another 210,000 MTs of rice have to be imported to meet the  demand for rice in the country until January 2023, the committee said.    The committee also recommends purchasing of a maximum  30,000 MTs of paddy from the current Yala season at a fixed price and  obtain a loan of Rs. 2 billion for the purpose from state banks.   

The committee also recommends importing broken rice for  animal food production as there was a huge shortage of chicken and eggs  in the market with spiralling prices. A special goods levy of Rs20 will be  charged for a kilogram of broken rice imported instead of Rs. 70 charged  earlier as multiple goods import tax.   A special commodity tax of .25 cents will be charged per kilogram of imported rice.  

Other members of the committee are secretaries of the  ministries of Finance, Agriculture and Trade, Mr. K.M. Mahinda  Siriwardana, Mr. M.B.R. Pushpakumara and Mr. S.T. Kodikara respectively. 

• A special commodity tax of .25 cents will be charged per kilogram of imported rice  
• This means Sri Lanka is short of about 600,000 MTs this  year as Sri Lanka’s annual rice requirement is 2.4 million at two  million MTs per month