IMF relief expected next month, President tells rice millers

• Mill owners say production costs have increased due to various factors

During a discussion held at the Presidential Secretariat on February 16, President Ranil Wickremesinghe announced that an International Monetary Fund (IMF) EFF loan is expected to be received in March and the possibility of reducing bank interest rates is being considered in line with the gradual drop of the inflation rate, a statement from the President’s Media Division (PMD) said.

The discussion was aimed at identifying the issues faced by small and large-scale rice mill owners and finding solutions to resolve them. The rice mill owners brought up the fact that the production cost of a kilogram of rice has increased due to various factors, including the rise in fuel prices, electricity charges, machinery maintenance costs, transportation costs, and all other production and administrative expenses. They noted that they would incur losses by selling their product at the current market price, as it is lower than the production cost.

The rice mill owners also pointed out the difficulty of paying a high-interest rate of 28% on bank loans taken to purchase paddy. It was mentioned that the production cost of a kilogram of paddy has increased due to the rapid increase in prices of agricultural inputs for paddy cultivation. Farmers have had to pay a high-interest rate on bank loans they had taken for cultivation. As a result, the rice mill owners demanded relief for the rice industry, which has reached a difficult stage to maintain operations due to the increase in production costs for both cultivation and rice mills. The President acknowledged their concerns and stated that it was the government’s expectation to provide all possible relief to consumers as well as farmers.