Connect with us

News

Leading rice miller stops paddy purchasing citing losses, PMB still out of picture

Published

3 years ago

on

By Sanath Nanayakkare

Leading rice miller, Lankeshwara Mithrapala says he has suspended purchasing paddy because it is not proper to purchase paddy from farmers at prices lower than Rs. 120 per kilo, and if he did purchase at that price, he would have to absorb a loss of Rs. 23 from each kilo of rice.

This is happening at a time the government has declared a certified price for paddy at Rs. 120 and the state-run Paddy Marketing Board (PMB) is keeping itself completely out of its main task of purchasing paddy from farmers to ensure a competitive and fair price to them.

When asked if there was some connivance between government officials and private millers to enable the purchasing of paddy at the lowest prices imaginable, Mithrapala said,” We don’t want anyone’s help to run our rice mills. But we can’t buy paddy at Rs. 120 per kilo and let the end-consumer buy a kilo of rice at Rs. 220-230 because of the loss we have to absorb in the process. There are various other brands, Nipuna, Araliya, Lak Sahal etc. If they could buy paddy at Rs. 120, they would because this is a competitive business. But they can’t buy at that price either because that would cause a substantial loss,” he said.

“If the government starts purchasing paddy, the farmers will be relieved,” he said.

Responding to queries, he said: “I bought paddy at Rs. 118-119 about 3-4 days ago. We can’t ask for paddy from farmers at prices lower than that. So, I decided to stop purchasing paddy and produce rice from existing stocks and release them to the market. It is better to stop buying paddy if Rs. 120 can’t be paid for a kilo of paddy. So, the government must intervene,” he said.

When asked if his business was running at a loss, he said,” I have enough money to operate my businesses. But I don’t have funds to collect and keep paddy stocks. What I am saying is that I will purchase paddy at Rs. 120 and will give rice at Rs. 220 per kilo. But to do that the government must declare a six-month moratorium on bank loans. If we have money to buy paddy stocks we would do so without seeking bank facilities because working with our own capital would bring us higher returns. But what do we do if we don’t have money?”

Elaborating on his costing issue he said: “When you buy paddy at Rs. 120 a kilo, there are other costs to take into calculation to run the business sustainably. It takes 1.6 kilos of paddy to produce a kilo of rice. This means the paddy cost itself would be Rs. 192. So when you buy at Rs.120, it actually costs Rs. 192 for paddy alone. For each kilo of rice; Rs. 7 for packaging, Rs. 7 for transport, Rs. 3.50 for electricity, Rs. 8.50 for employee salaries and food, Rs. 10-12 for bank interest.

Then there are the EPF and ETF payments and wear and tear costs of machinery. All these need to be calculated and recovered. These costs amount to about Rs 46 per kilo of rice. Effectively, therefore, the total cost of a kilo of rice is Rs. 238. But we sell to retailers at Rs. 215 and they sell at Rs. 220.

“So, this means that we are releasing our stocks to the market at a loss. That’s why we are saying that we can’t buy paddy at Rs. 120,” he said.

Meanwhile, a group of farmers in Polonnaruwa said: “We are compelled to sell our paddy to private sector traders because the government is just sitting around leaving the big rice millers to buy paddy. When the government does not come forward to break the monopoly of the private traders, we have no option but to sell our harvest to them at lower prices. When we sell them paddy at Rs. 100 a kilo, the income from one acre of paddy is only about Rs. 200,000 ,which is not enough to cover our inputs and labour cost. Big rice millers are making the most of this situation.”

The warehouses of PMB still remain closed and farmers have not been informed whether it would enter the market to purchase their paddy.A source familiar with state sector banking told The Island that PMB had outstanding loans of over Rs. 2 billion payable to the state banks.


Related Topics:
Continue Reading
Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

News

Interpol crackdown: Sri Lankan man among seven arrested in UK for human smuggling

Published

3 hours ago

on

2026/02/3

By

Suspect also wanted for child abuse: Extradition process underway

Among seven persons arrested in the United Kingdom for people smuggling is a Sri Lankan wanted by French authorities for the rape of a child.

UK’s National Crime Agency said that it collaborated with police and international partners in INTERPOL’s largest-ever operation targeting people smuggling and human trafficking.

Operation Liberterra III was led by the NCA’s Joint International Crime Centre (JICC) and targeted offenders wanted for a range of crimes who had entered the UK illegally.

Officers from the National Extradition Unit at the JICC made five arrests across London, Bedfordshire, Merseyside and Greater Manchester.

Those arrested included:

A 30-year-old Sri Lankan man arrested in Liverpool and wanted in France for the rape of a child

A 38-year-old Iraqi man wanted for rape in Germany arrested in Greater Manchester

A 29-year-old Egyptian man wanted for murder in France arrested in Bedfordshire

A 41-year-old Syrian man arrested in Greater Manchester and wanted in Germany for organising illegal small boat crossings

A 30-year-old Bulgarian man arrested in London for human trafficking and wanted in France

Greater Manchester Police teams also made two arrests across the county during the operation which was held between 10 and 21 November last year.

A 23-year-old Ukrainian man wanted in Germany for sexual exploitation

A 31-year-old Romanian man wanted in Romania for sexual exploitation

Extradition proceedings are underway for all seven suspects.

The NCA website quoted its Deputy Director of International Rick Jones as having said: “This global operation is a prime example of our commitment to working closely and effectively with international partners to tackle people smuggling and human trafficking.

“We were proud to host the European Co-ordination Unit and used a range of our specialist capabilities to gather and disseminate intelligence to law enforcement agencies across the world, and to enable our officers to identify, locate and detain offenders wanted overseas.

“As a result, seven suspects wanted in connection to serious offences have been removed from our communities and extradition proceedings are ongoing to ensure they face justice.”

Globally, 3,744 suspects were arrested including 1,800 for human trafficking and migrant smuggling offences.

Continue Reading

News

Sri Lanka calls on global consular corps to protect nationals amid fishermen incident

Published

3 hours ago

on

2026/02/3

By

Foreign Minister Vijitha Herath accepts a token of appreciation

Addressing a gathering of the world’s consular community, Foreign Minister Vijitha Herath issued a pointed, diplomatic request yesterday for the enhanced protection of Sri Lankan citizens abroad, a message delivered against the backdrop of a recent alleged assault on Sri Lankan fishermen by the Indian Coast Guard.

The occasion was the inauguration of the FICAC 2026 South Asia Regional Conference, hosted by The Association of Consuls in Sri Lanka together with the World Federation of Consuls (FICAC) at Cinnamon Life.

Minister Herath, while outlining Sri Lanka’s foreign policy of “non-alignment, strategic autonomy, and constructive engagement,” directly tasked the honorary consul community with a critical role. “I request the honorary consul community to maintain a continued and enhanced focus on safeguarding the rights and welfare of Sri Lankan nationals in respective jurisdictions,” he stated.

The appeal carries significant weight following recent media reports which detailed claims by a group of fishermen from Wennappuwa that they were assaulted by uniformed Indian Coastal Guards. The incident, alleged to have occurred partly in Sri Lankan territorial waters, resulted in hospitalisations and has been referred to the Foreign Affairs Ministry and Navy for investigation. Minister Herath’s carefully calibrated statement before the international audience underscored the government’s proactive but diplomatic approach to citizen welfare overseas.

Prime Minister Harini Amarasuriya, who also addressed the inaugural session, framed Sri Lanka as a nation on a resurgent path. She thanked FICAC for selecting Sri Lanka, noting the choice reinforces the country’s returning credibility under President AKD’s administration.

“Fiscal management is in good control with contained inflation and increased reserve levels and global confidence is returning as the country is moving towards stability, expanded economic activity and inclusive growth,” the Prime Minister stated. She also acknowledged the severe challenge posed by climate change, citing Cyclone Ditwah, and thanked the international community for its support during the disaster, which helped quickly revive the tourism sector.

Both leaders positioned the consular network as indispensable partners in Sri Lanka’s recovery and global re-engagement. Minister Herath emphasised their role in bridging “governments, businesses and communities,” while the Prime Minister stated such forums help reconsolidate the support of global actors.”

The three-day FICAC conference brings together consular officials from across South Asia, focusing on their unique role in facilitating diplomacy, trade, and legal cooperation outside traditional embassy channels.

By Sanath Nanayakkare

Continue Reading

News

Korean boost for Thriposha programme: Partnership worth USD 10 mn

Published

3 hours ago

on

2026/02/3

By

The Korea International Cooperation Agency (KOICA) has reached agreement with Sri Lanka to strengthen the country’s Thriposha nutrition programme through climate-resilient, locally sourced food systems.

According to the Korean Embassy here the agreement formalised a USD 10 million partnership that would enhance domestic production of high-quality maize, reduce reliance on imports, and reinforce the sustainability of Sri Lanka’s flagship nutrition intervention for children and mothers. The agreement in this regard reflected the shared commitment of the Republic of Korea and Sri Lanka to advancing inclusive, resilient, and sustainable development outcomes, the Embassy stated.

The agreement was signed in the presence of the Ambassador of the Republic of Korea to Sri Lanka Ms. Miyon Lee, the Minister of Rural Development, Social Security and Community Empowerment Dr. Upali Pannilage, Country Representative, World Food Programme (WFP) Philip Ward, and senior representatives from the Ministry of Agriculture, Ministry of Health, Ministry of Trade, Sri Lanka Thriposha Limited, demonstrating the commitment by all relevant stakeholders of this unique project.

Continue Reading

Trending