Some mill owners sell imported rice under local brands - Dudley Sirisena

• A leading mill owner is also behind it
• President’s move for organic farming the biggest affront to the sector
• Rice stocks available for three months
• We are under heavy criticism. They talk about price manipulation by us. Pricing should be fair, no doubt
• Rice prices will never fall below Rs.200 a kilo

President of Rice Millers’ Association and Chairman of Araliya Group Dudley Sirisena takes questions from DailyMirror on the current status of the rice market. Rice is the staple food of Sri Lanka. There is talk of an impending food crisis. Mr. Sirisena, the brother of former President Maithripala Sirisena, holds a major share in the market. He recently vowed to sell rice at the prices stipulated by the government despite objection by other mill owners. 
Excerpts of the interview:   

Q  We talk about a food crisis primarily triggered by the rice shortage. As one of the leading rice supplier, what is your view in this regard?

 As a leading rice miller, I can say that the government is responsible for ensuring food security of the country. For that to be done, there are numerous ministers, ministries and state institutions. They are all paid by the public. It is the responsibility of the president, the prime minister and the Cabinet. But, they have abdicated their responsibility in this regard for the last 25 years, I would say. We, as businessmen, have done our duty to ensure food security. Nevertheless, we are under heavy criticism. They talk about price manipulation by us. Pricing should be fair, no doubt. Had the government done business operations currently being done by us, there would have been multi-billion frauds. It would have been a serious drain on the state coffers. The current economic crisis would have been compounded further. Actually, I, along with other mill owners, ensured food security. I am someone who did my duty for the country.   

Q  I asked about impending food security. How serious is the rice shortage? 

The country has encountered issues related to fund supplies on and off . But, people have not starved on the roads. People lost their income sources because of Covid-19. We took right decisions at that time to mitigate the impact. Today, we find a situation in which people are unable to eke out a living because of fuel shortages. They spend hours on end in queues for fuel, gas and food. Still, we did not have any issue as far as rice prices were concerned. Rice was sold at fair market rates. We, as manufacturers, had concerns because of rising costs of raw materials such as packing materials. As a result, we asked the government for a price hike of our products. The subject minister listened to us and asked for some more time to address our concerns. After that, the prices of rice varieties - milled and unmilled- were increased. The price of a bag of unmilled rice has risen from Rs. 7500 to Rs.10, 000. The exorbitant rise was triggered by remarks of the Agriculture Minister and the Prime Minister.   
A dozen of days ago, a new controversy emerged. I was out of the country for seven days. I spoke to the president and the trade minister. I asked them to take a fair decision on pricing. There was no response. So, I decided to take a decision upon return since there was no initiative by the president and the prime minister. Rice is our staple food. I am the biggest rice supplier. As such I took a decision.   

Q  How long will current stocks suffice?

We may not be facing any problem for another three months. We have no idea about the yield of the current season. The government says the price of a bag of fertilizer is only Rs.10, 000. In contrast, farmers actually buy it at Rs.40, 000 in the market. A can of pesticide or herbicide is Rs. 18,000. It was only Rs.3000 earlier. They buy diesel at Rs. 600 a litre in the black market. Farmers collect their harvests for two months a year. They have to manage with it for the whole year-12 months.   
They also face inflationary pressure. I cannot say the prices to be offered to farmers for their upcoming harvest. Lets’ talk about it then! Let’s try to redress their concerns and maintain a fair price for farmers in the market!   

Q  You vowed to sell rice this time at the rates stipulated by the government. Why did you fall in line with the government this time? 

It is possible for us to sell rice at higher rates if we really want. We took this decision for the benefit of consumers regardless of the high production cost involved. Otherwise, it is not cost effective for us. Bank interest rates have gone up. Diesel prices have increased by 300 percent within a short period. The cost of packing materials has also increased by 100 percent. The rupee value has depreciated against the US dollar. So are cement and iron prices. We have to increase salaries of our employees. Our cost has really increased. It has a huge bearing on us. We know we can increase prices in the future. We have purchased our current stocks of paddy at Rs.120 a kilo. It is possible for us to mill these stocks and sell rice at Rs.220 a kilo. We have stocks sufficient for three months. Yet our fuel problem should be addressed. Then, we will provide rice at this price for the next three months.   

"Our cost has really increased. It has a huge bearing on us. We know we can increase prices in the future. We have purchased our current stocks of paddy at Rs.120 a kilo. It is possible for us to mill these stocks and sell rice at Rs.220 a kilo. We have stocks sufficient for three months. Yet our fuel problem should be addressed"

Q  You said you have rice stocks sufficient for three months. Are you talking about your stocks of paddy or those of the entire country?

In the entire country, there are around 600,000 tonnes of paddy available at the moment.   

Q  But, other mill owners disputed your position on rice pricing. You confronted them openly during a press conference. Won’t it upset the market forces again leaving consumers in the lurch? 

Have they imported paddy from elsewhere in the world? If I can give, why can’t they do it? Fuel prices are common to all of us. There are no different rates for me and them. Dollar crisis affects all of us equally. The cost of packing materials is common to all. Some of the leading mill owners even have plants manufacturing packing materials.   

Q  Unless other rice suppliers fall in line with you for standard pricing, will it be possible for you to prevail upon market forces?

I have done what I can do. If the leaders of this country act with backbones, they should come forward and resolve this. Otherwise, I will mobilize people for price control. I can do it.   

Q  When you say mobilization of people, what do you mean?

I will say the responsibility lies with people to make sure that rice is available to them at fair prices. Now, it is up to people to prevail upon those concerned to control prices. People should assert themselves in full measure to securing fair prices. I stand by people.   

Q  In the past, all the rice varieties such as Keeri Samba, Nadu and Samba were available in adequate quantities. Today, the rice market has been distorted. We find some varieties aplenty and others in short supply. What is the reason?

People are concerned about the quality of rice they consume when their income levels increase. The number of people consuming Keeri samba has increased. Nadu rice was mostly consumed by low income people. It is more profitable for farmers to cultivate Keeri samba. Farmers have increasingly given up Nadu rice cultivation . It is the duty of the Agriculture Ministry, Department and officials to promote cultivation of different rice varieties.   

"Had the government done business operations currently being done by us, there would have been multi-billion frauds. It would have been a serious drain on the state coffers"

Q  Around one and half or two years back, rice price remained less than Rs.100 a kilo. Today, it has more than doubled. Will it ever be possible to bring down the prices to the previous rates? 

It is not the rice prices only. The prices of other food commodities have soared. If you compare the prices of other food items then and now, you will notice the difference.

Q  But, the rice prices jumped suddenly. What is the reason?

Again, you have to compare the prices of other food products. The price of a kilo of green gram has increased from Rs. 150 to Rs.1000. The price of a loaf of bread has gone up from Rs.60 to Rs.170. So are the prices of chillie and dhal.   

Q  If rice production is increased once again with the re-introduction of chemical farming, will the prices drop to such rates?

Rice prices will never drop to less than Rs.100 a kilo. I think it won’t even fall below Rs.200 a kilo. The costs of agricultural inputs have increased exponentially.   

Q  What is your assessment on the impact of organic farming on rice farming?

 This is the biggest ever affront to the economy of this country. The president of the country made such a body blow to the economy by deciding on a subject without the least knowledge of it. It resulted in 60 percent drop in rice production.   

Q  You blamed the present misery of the country on the politicians who ruled this country for the past 25 years. Your brother Maitripala Sirisena also served as the Head of State once. Before that, he served even as the Agriculture Minister. Does your criticism apply to him as well? 

It applies to him as well. I cannot absolve him of any responsibility merely because he is my brother. But, the Paddy Marketing Board made the biggest profit only under him as the Agriculture Minister. He was running the ministry well. But, then President Mahinda Rajapaksa got envious of him and stripped him of that portfolio. In the aftermath of the launch of the Moragahakanda project, he was removed from his post by Mr. Rajapaksa. We took a political decision in 2015 to resurrect the country from the disaster inflicted by the Rajapaksa rule. We did it in collaboration with the UNP leadership.
However, the UNP leadership committed an even bigger damage to the country. Within two months after formation of that government in 2015, the Central Bank bond fraud took place shattering hopes for the future. Both Mr. Mahinda Rajapaksa and current Prime Minister Ranil Wickremesinghe never allowed Maitripala Sirisena to perform well.   

Q  With your sudden empathy with rice consumers, do you have any political ambition?

I have known politics since I was eight years old in 1968. I am someone who saw the Siyarata Exhibition of then Prime Minister Dudley Senanayake in 1968. I know politics thanks to my brother. If I want to do politics, I don’t want the support of any party. I can contest independently and win in any part of the country.   
I am disgusted with current politics given the sordid conduct of our politicians. That is why I did not join politics. I believe I can do a better service to the country as a businessman. I do fair trading paying bank interests and taxes and taking care of the wellbeing of my employees. Nobody can point a finger at me for any fraud.   

Q  Today, rice is imported. How do you see it? 

The local production dropped drastically after the president’s decision regarding organic farming. We had become self-sufficient in rice after the war was over. It is not the agriculture sector but the whole country is in ruins today due to blunders by the leaders. Everyone should be held accountable.   

Q  There is public perception that some mill owners import rice to be processed and sold under local brands higher rates for undue profits. Is it true?

A lot of mill owners do it. One leading mill owner is also behind it. There is a court case pending against one mill owner for mixing foreign rice with local rice to be sold. He is nicknamed ‘Helicopter’.