Rice crisis: Importers cite inability to stick to control prices

By Kelum Bandara   

Importers insist that the government should reduce duty on rice from Rs.65 to 50 a kilo and extend deadline for placement of orders till December 31 st at least as otherwise local retailers will find it challenging to stick to the price controls stipulated by the government, a spokesperson said.

The government has declared the wholesale price of a kilo of Nadu rice at Rs. 225, retail price at Rs. 230.  
The wholesale price of a kilo of white rice is Rs. 215,and the retail price Rs. 220.  
The retail price of a kilo of imported Nadu rice is Rs. 220. The wholesale price of a kilo of Samba rice is Rs. 235, the retail price Rs. 240. The wholesale price of a kilo of Keeri Samba is Rs. 255, and the retail price Rs. 260.  
A spokesperson for the Essential Commodities Importers’ and Traders’ Association told Daily Mirror that rice is imported currently from suppliers in Tami Nadu in India since it is the nearest supply base at the moment . He said the price of white raw rice costs US $ 475 a tonne in average, Swarna Nadu US $ 490 - 510 a tonne and GR 11 US $ 535.  

He said there should a difference of Rs.8-10 a kilo between wholesale and retail prices in the local market for imported varieties.  

According to him , it is challenging to supply rice at the stipulated rates given the current import duty and world market prices.   

He also said rice could be imported at lower rates from suppliers in cities such as Kolkatta in India if the deadline is extended till the end of this month at least.