Govt. to set up rice mills as private-cooperative partnerships to counter exorbitant prices

The Cabinet approval has been granted to a proposal to establish rice mills as private-cooperative partnerships across the country and to allow additional rice imports as a solution to exorbitant prices of rice prevailing in the market, despite maintaining sufficient rice production over the past few years.

Trade Minister Bandula Gunawardena sought the approval of the Cabinet of Ministers to set up five rice mills equipped with modern technology in the Kurunegala, Anuradhapura, Batticaloa, Hambantota and Ampara districts as private-cooperative partnerships, with a view to purchase rice from the upcoming Maha season and to distribute it through the Lanka Sathosa and Co-operative Societies network.

As a solution to exorbitant market prices of rice, the Cooperative Services, Marketing Development and Consumer Protection State Ministry has planned to implement the programme to purchase a significant portion of the paddy harvest in collaboration with cooperatives to produce rice and sell it at a reasonable price.

The government stressed that the country harvests more than sufficient rice to meet the national requirement annually.

“The annual rice consumption requirement in the country is approximately 2.2 million metric tonnes. The harvest for the 2020/2021 Maha season and 2021 Yala season is approximately 4.8 million metric tonnes of rice and that amount can produce about 3.2 million metric tonnes of rice,” the Government Information Department pointed out.

However, as a short-term measure, Gunawardena sought the approval of the Cabinet of Ministers this week to import 6,000 metric tonnes of rice immediately under the provisions of the Pakistan-Sri Lanka Free Trade Agreement, as a solution to higher prices and the artificial rice shortage in the market.