By Shamindra Ferdinando

The United Rice Producers’ Association (URPA) has alleged that the releasing of one million kilos of rice held at the Colombo Port will lead to a sharp drop in the rice prices and the rice market could even collapse.

Muditha Perera, who heads the Polonnaruwa-based URPA, told The Island that farmers had been struggling to sell their produce. “If large stocks of imported rice are allowed into the market now, there would be a catastrophe,” Perera said. According to him, since Oct, 2021, nearly 700,000 metric tonnes of rice have been imported following the reduction of levy imposed on a kilo of rice to 25 cents.

The entrepreneur said that the URPA on Sunday (16) had brought the further deterioration of the situation to the notice of the Presidential Secretariat via an e-mail. In spite of a much-touted directive that had been issued by President Ranil Wickremesinghe as regards swift government response to public concerns, the URPA was yet to receive at least an acknowledgment, Perera said.

The Finance Ministry confirmed that State Finance Minister Ranjith Siyambalapitiya issued instructions on Oct 12 to the Customs to release one million kilos of imported rice that hadn’t been cleared over the past few years. According to the Finance Ministry, the decision has been taken following talks between State Minister Siyambalapitiya and Ports and Shipping Minister Nimal Siripala de Silva at the latter’s ministry.

The ministry disclosed that 79 containers, carrying one mn kilos of rice, had been held over the failure on the part of the importers to pay demurrage for failing to clear them on time. They were among 950 containers detained at the Colombo harbour on the same charge, the Finance Ministry said, adding that there were considerable quantities of turmeric and karunka among that backlog.

Muditha Perera said that successive governments had allowed large scale imports of rice and other items at the expense of local producers. In a letter, dated Oct 16, addressed to President Wickremesinghe, the URPA alleged that in spite of sufficient stocks in the country, the SLPP resumed rice imports in Oct 2021, much to the disappointment of farmers. Claiming that this was done at the request of major rice millers, affiliated to the ruling alliance, the Association blamed the then Trade and Agriculture Ministers, Bandula Gunawardena and Mahindananada Aluthgamage, respectively, for negligence and unilateral decisions taken at the expense of the farmers.

The Association alleged that in spite of the continuing severe foreign exchange crisis and the availability of sufficient stocks of rice, the government allowed rice imports probably in a deliberate attempt to discourage the farming community.

Commenting on the devastating impact of the fertiliser and agro chemicals ban imposed by the then President Gotabaya Rajapaksa on the agriculture sector, the Association President asserted that the 2021/2022 Maha yield dropped by as much as 900,000 metric tonnes as a result.

The Association compared the large-scale import of rice with such imports in 2014/2015 that compelled the yahapalana government to even use Mattala airport to store paddy.

Declaring that the industry was in an acute crisis, Perera warned of irreparable damage to the economy. “Most of the farmers and small and medium rice producers are in a dilemma. Against the backdrop of sharp increase in electricity rates and depreciation of the rupee, the production costs have gone up,” Perera said.

The Association chief alleged that though some politicians referred to this issue, political parties hadn’t addressed the recurring problem though they repeatedly assured the farmers of their wellbeing. How could they guarantee food security when the farmers were unable to sell their produce, Perera said, urging Parliament to address the issues at hand or face the consequences.