Farmers fume over import plan to plug keeri samba shortfall
A Cabinet decision made at the height of a shortage to import 50,000 metric tonnes of GR11 rice as a substitute for the popular keeri samba came too late as stocks could not arrive in time to tide over the scarcity during the festive season.
The Cabinet approved imports last week. The State Trading Corporation (STC) has now asked the Finance Ministry for instructions on whether to continue with the purchases, Asiri Walisundara, chairman, told the Sunday Times.
“We are on standby,” he said. “Within the next one to two weeks, we will finalise the decision and imports will proceed.”
But president of the National Agrarian Unity, Anuradha Tennakoon, criticised the Government for approving imports, saying it will adversely affect the local industry. Rice produced during the recently ended Yala season was sufficient, despite droughts in July and August, he said.
Rice prices are currently high. Mr. Tennakoon said this was owing to increased costs for farmers. When imports arrive, those stocks will compete with local produce from the upcoming Maha season. Harvesting in the Eastern Province will start by March. This will cause prices to plummet, hurting the local industry as farmers will not be able to produce at lower cost with the VAT being imposed on agricultural equipment for the first time next year.
Buddhi Marambe, senior professor in the department of agriculture of the University of Peradeniya, said a collective decision on rice prices should have been made at the beginning or towards the middle of the cultivation season.
Sri Lanka consumes 210,000 metric tons of rice per month. This means the amount approved for import will be “inadequate to feed the nation for even a month”. This was “not to say that larger amounts of rice should be imported”, he said. He predicted an initial drop in prices, but said they would rise again.
Imports, which are to be sold through Sathosa, are probably aimed to be a “concession” to the “poorest of the poor”, he observed. Keeri samba productivity is relatively low (compared with nadu and samba) but the cost of production per kilogram is high. The processed output is also low.
“Because of the price increase, if farmers start to cultivate more keeri samba, it might be available for a cheaper price, but there will be a higher product price by the end of the following season,” Prof. Marambe said.
G. A. Wijebandu, the Trincomalee District Rice Millers Cooperative Society secretary, said small and medium mills will suffer from imports. “The farmers will sell us paddy at high prices due to inputs being costlier and our rice will not be able to compete with the low prices of imports,” he explained.
Dudley Sirisena, chairman of the Araliya Group of Companies, said decisions have been taken by people “without any understanding”. He rejected allegations that keeri samba, not available at retail or wholesale markets, was being stockpiled.
“If the farmers have not produced keeri samba, how are we supposed to hide it?” Mr. Sirisena asked.
Hotels have switched to normal samba or local basmati, said president of the Kandy Hoteliers Association Rodney Armstrong. While larger hotels do not need imported rice, small operators on lower margins might require it.
“Earlier, I bought keeri samba for Rs. 241 a kilogram,” Mr. Armstrong said. “But last December, it was only Rs. 150 to Rs. 160.”
A retailer at Manning market, Mohammed Nazar, said he does not offer keeri samba as the millers’ price is Rs. 340 — but the Consumer Affairs Authority (CAA) raids any retail shop selling it at more than Rs. 260. He supported imports to lower prices.
Owner of P. N. N. Groceries at Manning Market, A. Pradeepan, who proudly only offers local rice said he will also sell imported rice as there was no keeri samba.
Chairman Shantha Niriella said the regulator will continue to raid shops that sell keeri samba for more than Rs. 260, as per the gazette. “Customers can show the bills to the CAA,” he said. “Only then can we act on those complaints.”