crisis spirals, Govt. extends deadline for imports till January 10

• Importers demand cancellation of price controls
• Pakistan offers to sell rice at competitive rates to Sri Lanka  

By Kelum Bandara   

Amidst irregularities in rice supply and shortages in some  places, the government, upon request by importers, has decided to extend  the deadline till January 10, 2025 for imports, a top source said. The  previous deadline ended yesterday.   

The new deadline will be announced in the gazette notification after the Cabinet endorses it next Monday.   
A group of representatives of the Essential Commodities  Importers’ and Traders’ Association had a meeting with Trade Minister  Wasantha Samarasinghe recently and requested him to extend the deadline  as otherwise it would be challenging to place orders for sufficient  stocks unhindered.   

Given the short duration, importers cited that rice could  be purchased only from locations geographically close to Sri Lanka such  as Tamil Nadu and Andhra Pradesh in India, but stocks could be shipped at  cheaper rates from places like Kolkata.   

President Anura Kumara Dissanayake has directed rice  traders to sell Nadu rice to consumers at a wholesale price of Rs. 225  per kilo and a retail price of Rs. 230 per kilo. The President announced  fixed prices for various other rice varieties -white rice: wholesale –  Rs.215/kg; Retail – Rs.220/kg, imported Nadu Rice: retail – Rs. 220/kg,  Samba Rice: wholesale – Rs. 235/kg; Retail – Rs. 240/kg and Keeri Samba  Rice: wholesale – Rs. 255/kg; Retail – Rs. 260/kg. Rice is cultivated  in two seasons in Sri Lanka – Maha and Yala.  

However, a leading rice importer said his association would  write to the President requesting him to reduce duty from Rs.65 a kilo  to 50 and do away with price control mechanisms for imported varieties.   

“In recent days, there has been a slight depreciation of the rupee  value against the US dollar. It affects us. Also, the import duty is  high. It is difficult for us to stick to the control prices,” he said.   

Also, he said around 10,000 tonnes of rice remained stuck  in Tuticorin and Madurai in India due to stormy weather earlier and  these stocks had arrived.   

Currently, there are irregularities in market supply, with  rice of some varieties not being available at the regulated prices at  some places.  

A leading mill owner who wished to remain anonymous said he  had maximized his supply to the market at the rates declared by the  government.   

He said supply varies from mill owner to mill owner  depending on paddy storage with each of them. The next harvest is  expected in February, next year. Until then, the government has  allowed rice imports to control any possible surge in prices. Rice is  the staple of Sri Lanka, and any price hike has a bearing on the cost of  living as a result.   

In the meantime, Pakistan, as a major rice-producing country, has offered to sell their products at competitive rates.   

Once the Sri Lankan government decided to import rice, the  Pakistani High Commission in Colombo engaged with the authorities  concerned here about the availability of rice –both Basmati and non-Basmati varieties of Pakistani to be supplied at affordable, competitive rates.  

Sri Lankan importers are currently in touch with their  Pakistani counterparts. In Sri Lanka, coarse varieties are mostly  consumed. Pakistan is a leading rice producer in the world, cultivating  both Basmati and coarse varieties.   
Sri Lanka imports 6,000 tonnes of Basmati rice from  Pakistan under an annual quota announced in the Free Trade Agreement  between the two countries.