The debate surrounding the pricing of paddy in Sri Lanka has taken center stage as Deputy Minister of Agriculture Namal Karanarathna pointed out that farmers are not being fair when determining the guaranteed price for their produce.
He emphasized that the government’s efforts to ensure a fair and transparent system are being met with resistance from farmers who seem unwilling to cooperate in setting a balanced price for paddy, particularly in light of the fluctuating availability of fertilizer subsidies.
According to Karanarathna, the government has instructed that the cost of paddy production be calculated with and without the fertilizer subsidy, recognizing that many farmers have not received the full subsidy.
Despite this discrepancy, the government has undertaken the task of calculating production costs under both scenarios to arrive at a justifiable price.
Karunarathna assured that the government is committed to announcing what he described as “the fairest guaranteed price of paddy in history” after factoring in all relevant concerns.
He acknowledged that the cost of production varies depending on the fertilizer subsidy, but the ultimate goal is to protect the interests of both farmers and consumers.
The bigger picture: Food security and data gaps
In a related development, Trade and Cooperative Food Security Minister Wasantha Samarasinghe has voiced concerns over the lack of accurate data regarding the country’s rice needs, both for human consumption and for animal feed.
He highlighted that chickens, in particular, require rice for feed, and feeding them exclusively rice could result in egg yolks turning white—a sign of improper nutrition.
Samarasinghe called for the creation of a robust database to track rice consumption patterns across sectors, stressing the importance of such data for ensuring the country’s food security.
Paddy prices surge: The ripple effect on rice
As the government grapples with the pricing of paddy, small and medium-scale paddy mill owners have raised alarms over the possible surge in rice prices.
With the price of a kilo of paddy reaching between Rs. 140 and Rs. 170 during this year’s Maha season, industry insiders warn that the price of a kilo of rice could exceed Rs. 300 in the near future.
The rise in paddy prices has also led to increased costs for wet paddy, which now sells for Rs. 115 to Rs. 120 per kilo. In response, the government has offered Odapana loans to mill owners to purchase paddy at lower rates—Rs. 95 per kilo for wet paddy and Rs. 115 per kilo for dry paddy.
Special provisions have also been made for the purchase of Samba paddy at Rs. 120 per kilo and Kiri Samba at Rs. 130 per kilo.
Despite these efforts, farmers continue to allege that the government is dragging its feet on setting a guaranteed price. S.K. Mahinda Samarawickrama, chairman of the Walawa Joint Farmers’ Organization, expressed frustration, accusing the government of delaying the decision while the private sector buys paddy at significantly higher prices.
“Today, the private sector is buying paddy for Rs. 170 per kilo, and rice is being sold for as much as Rs. 300 per kilo. The government, which cannot halt this, is failing to offer a guaranteed price,” said Samarawickrama, adding that farmers will not sell paddy to the government if it continues to buy in small quantities.
Mills closing down, rice scarcity looms
The escalating price of paddy has forced many small-scale paddy mills across the island to close down due to the shortage of affordable paddy stocks.
Mill owners say they cannot compete with the higher prices offered by the private sector, nor can they sell rice at government-controlled prices while bearing the inflated cost of paddy.
This has resulted in a scarcity of rice in shops, with only local basmati varieties available, selling for between Rs. 250 and Rs. 270 per kilo.
With paddy prices soaring and mill closures becoming widespread, consumers could soon be facing a sharp rise in rice prices, further exacerbating the already fragile food security situation in the country.
The paddy pricing issue in Sri Lanka is quickly becoming a major economic and social concern.
With farmers, mill owners, and government officials at odds over the fair cost of production and market pricing, the outcome of this dispute could have far-reaching consequences on both rice affordability and availability.
While the government works to establish a fair guaranteed price, the pressure is mounting to find a solution that balances the needs of all stakeholders—farmers, consumers, and the wider agricultural sector.
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