A rice mafia operates in the country creating hardships for consumers every year during the festive season. However, no former Government in power has been able to provide a lasting solution to this burning issue. Many trade analysts said that one of the main reasons for the rice shortage in the market is the jacking up of prices by large-scale rice mill owners.

As the price of rice increased and paved the way to create a rice shortage in the market, President Anura Kumara Dissanayake recently held an extensive discussion with large-scale rice mill owners at the Presidential Secretariat. Following the discussion, it was announced that rice must be supplied at the controlled price stipulated by the Government. Despite large-scale rice mill owners agreeing to this, the situation changed when the rice reached the market. Retail traders get their rice from large-scale millers and middlemen. Sometimes, rice from the North Central Province is also obtained through some middlemen. This may also lead to an increase in the rice prices in the market.

Festive season

However, the Government has taken measures to ensure an affordable and uninterrupted supply of rice to consumers during the festive season. President Dissanayake discussed with the large scale mill owners to identify immediate measures needed to achieve this goal. The discussion focused on enhancing storage facilities across the country to prevent shortages and ensure a steady rice supply. The Government has also taken a policy decision to assist small and medium-scale rice mills in expanding their capacity, to stabilise the rice market.

President Dissanayake during the recent discussion with rice mill owners warned against exploitative practices, adding that no business would be allowed to profit unfairly by inflating rice prices, reaffirming the Government’s commitment to ensuring accessible rice prices for the public. The President said that low-interest bank loans have been provided to traders to purchase paddy and called upon rice traders not to undermine the public’s right to access affordable rice. The Consumer Affairs Authority (CAA) raids to identify errant traders who sell rice above the controlled price and tend to hide stocks will be expanded and legal action will be taken promptly against them.

Following a recent discussion with rice traders, the President directed new maximum retail and wholesale price limits for various rice types. President 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 has also instructed the officials of the CAA to closely monitor the situation and strictly enforce the law against rice mill owners who fail to comply with the fixed prices.

During a recent discussion the President had with rice traders, the President had also taken to task rice mill owners for changing the rice prices daily and instructed the CAA to monitor the daily rice production and distribution by rice mills. President Dissanayake called upon the rice traders to cooperate with the Government in resolving rice-related issues in an amicable manner.

Social responsibility

During an earlier discussion, the President held with rice mill owners, the President said that the Government will support small and medium-scale rice mill owners in enhancing their capacity to help stabilise prices.

The President had said that since the Government invests significantly in promoting agriculture, irrigation, and fertiliser subsidies, these businesses have a social responsibility to provide rice to consumers at a reasonable price.

The President had also stressed that no businessman will be permitted to exploit the situation by unfairly raising rice prices.

President Dissanayake also met officials from the Agriculture and Trade Ministries and representatives from the Paddy Marketing Board (PMB) recently to address rising rice prices and discuss stabilisation measures. During the meeting, the President had outlined immediate action to tackle price concerns, highlighting the need for a comprehensive database of rice mill owners and wholesale dealers. He had instructed officers to inspect rice stocks in the districts and gather information on pledge loans related to rice storage.

The CAA has launched raids to identify traders selling rice at prices higher than the maximum retail and wholesale price recently set out by the Government. This decision has been taken in accordance with the gazette notification issued on December 9, which specifies the new maximum retail and wholesale prices for rice. It has also been decided to take legal action against the rice traders who violate these new price regulations.

Hotline 1977

The CAA calls upon traders, producers, wholesalers, and consumers to adhere to the announced rice prices. “If there is any irregularity or sale of rice at an excessive price, the consumers can complain about it to the CAA via the hotline 1977. They can also complain to the CAA’s district offices and the head office. Raids will be conducted by the CAA to identify traders selling rice above the Government-mandated Maximum Retail Price (MRP).”

A CAA spokesman told the Sunday Observer following the raids conducted during the past four days up to Friday (December 13), the CAA has taken legal action against 275 traders for selling rice above the Government-imposed controlled price. Instructions have also been given to the CAA officials to conduct these raids during the forthcoming holidays as well. Following the instructions given, the CAA officials have commenced special raids in all districts from November 25 and they have been asked to focus attention on rice.

He said that the raids to identify traders who sell rice above the controlled price and tend to hide stocks will be expanded and legal action will be taken promptly in case of detected offences. He requests all the traders to refrain from selling rice at high prices adding that the CAA has commenced increasing raids during the festive season.

He said a minimum fine of Rs.100,000 up to a maximum fine of Rs.500,000 can be imposed on a normal trading establishment if the rice is sold at prices exceeding the Government-imposed controlled prices and it is mandatory to display the prices of rice. A fine of Rs.500,000 up to Rs.5 million can also be imposed on a private company which sells rice exceeding the Government controlled price. He said that the date of manufacture must be displayed and that selling rice at higher prices is prohibited and that instructions have been given to CAA officials to carry out the raids continuously.

Hence, the operations to arrest traders selling rice above the controlled price and hoarding stocks have been intensified. These raids are carried out in accordance with the Gazette Extraordinary notifications issued under the signature of the Chairman of the CAA. Asked whether there is any rice shortage in the market, CAA spokesman said that the rice shortage is being reduced systematically due to the decision taken by the Government to import rice. Therefore, the country’s rice shortage is expected to be resolved with the arrival of imported rice in the market.

The private sector has imported 1,900 metric tonnes of rice from India since December 10, 2024. On December 3, the Cabinet of Ministers approved the proposal to allow the import of rice without import control permits until December 20, 2024, in view of the shortage of several rice varieties in the local market. A Gazette notification was issued by the CAA recently stipulating the maximum wholesale and retail prices for local and imported rice.

Published Date: December 15, 2024