Extra rice shipped back

An importer who insisted on strict anonymity told the Daily Mirror yesterday that traders had to suffer a loss of at least Rs. 5 a kilo because of this situation.

“The Government removed taxes on rice imports on the assumption that there was a rice shortage in the market. Actually, there was no such big shortage. Now, there is an oversupply. Traders have imported big quantities. We have to re-export them now. The first stock will be shipped to Bangladesh,” he said.

In addition, the Government also imported a variety of rice and started selling it to consumers at a low price, he said.

“This has an adverse impact on private traders. The actual cost of such a kilo of rice is Rs. 52. However, the Government sold it at Rs. 47 a kilo,” he said.

Asked for comments in this regard, Trade Minister Bandula Gunawardena said that the Government waived Rs. 25 levied on a kilo of rice imported because there was a plan to create an artificial shortage in the market and increase the price of rice to Rs. 150 a kilo.

“We took this step to avoid such a crisis. Traders are required to take risks when doing their businesses. Now, the Finance Ministry has given permission for them to re-export extra stocks,” he said.

The Minister pointed out that the local paddy harvest is also being reaped at the moment, and as a result, rice prices will drop in the future.

“After 30 years, agricultural products are coming from the North. We receive lorry loads of carrots, cabbages and potatoes from the Jaffna district. If all the agricultural land in the North is cultivated, we will not have any food crisis in the future,” he also said.

Source: dailymirror