The people of Sri Lanka are going through their most unfortunate and difficult period. People struggling for survival have no mental relief. Although they managed to oust presidents through protests and establish new governments, there are still no proper solutions to people’s problems. Instead, they face increasing pressure.
People facing this situation now cannot even afford to eat rice with salt. Although Sri Lanka was known as a country where people ate three good rice meals a day, now they cannot even afford one meal. The skyrocketing price of rice is the reason. Some say the rice problem has become so severe that the country now needs to seek international aid.
The Hidden Agenda: Rice Mill Owners and the Artificial Shortage of Rice
It’s sad for a country whose election promises included not importing even a single grain of rice. The current government that made such claims has been forced to import rice to feed its people. Sri Lanka is facing a severe rice shortage.
There are opinions that this situation has been created by large-scale rice industrialists hoarding rice stocks. Their aim appears to create an artificial rice shortage to earn unlimited profits. The current prices are also determined by rice mill owners.
Is the New Government Falling for a Conspiracy?
The United Rice Producers Association indicates that the rice crisis would end if the control price of Rs. 220 is removed. The association has requested the government to determine rice prices based on a paddy price of Rs. 130 per kilo. The association believes the rice shortage is a manufactured crisis. They claim plenty of Nadu rice stocks are available in the country for Rs. 145. However, the association suggests that the current government has fallen victim to a conspiracy by certain groups to push for rice imports.
Cost For Family Meals Rising Dramatically
Based on current prices, a household of five people needs approximately 3 kilos of rice for three meals a day. This means spending Rs. 750 per day on rice alone. Most Sri Lankan families have at least five members, and often more.
Rice that cost around Rs. 90-100 per kilo just two years ago has suddenly jumped to Rs. 250, creating an unbearable burden for people. Including other expenses, a family’s daily costs can reach around Rs. 2,500. Even this amount falls short of meeting expected needs.
To maintain the standard of living from 3-4 years ago, a family would need to spend about Rs. 4,000 daily. The average Sri Lankan family cannot afford such expenses with their current income, forcing them to limit their needs and live under pressure.
Issues with Price Controls
Some trade associations suggest increasing the controlled price for rice to Rs. 240. The United Rice Producers Association and other representatives indicate this could end the rice crisis. They advocate removing the gazette notification setting rice prices at Rs. 220 per kilo and argue that selling rice at around Rs. 240 would help resolve the current shortage.
Other Contributing Factors
Proposals have been made to limit rice allocation for beer and animal feed production. Much rice goes to beer production and animal feed rather than human consumption. Post-harvest losses also contribute to the shortage. The market is currently debating when rice imports will arrive. While the government claims Indian rice stocks will arrive by December 20, importers’ associations suggest it will take longer.
Importation Challenges
Despite the decision to import rice from India, implementation is complex. It’s not a simple process of immediate procurement and shipping. The process involves purchasing, shipping, port clearance, customs procedures, and distribution to wholesalers. Rice importers indicate this makes releasing stocks to the market by the promised December 20 date difficult.
The government maintains its plan to bring Indian rice by the 20th, with private-sector import permissions granted to ensure adequate supply during the festive season. Trade Minister Vasantha Samarasingha stated in Parliament that rice mills have sufficient stocks, with mill owners agreeing to provide 200,000 kilos daily to Sathosa outlets. He emphasised the swift implementation of importing 70,000 metric tons of rice from India to address the shortage.
