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Red rice shortage blamed on RW, chicken implicated
ECONOMYNEXT –Sri Lanka’s red rice which disappeared from shop shelves after price controls were strictly enforced, was due to the ex-President Ranil Wickremesnghe distributing rice, Trade Minister Wasantha Samarasinghe claimed.
“The last government before the Presidential election did a dastardly (Alu-goth-theru, thaka-thiru wedak) before the presidential election,” Samarasinghe told parliament.
“They took red rice from mills in the South paying 10 rupee extra (per kilo) and distributed it around the country.”
“They gave red rice to people who do not usually eat it,” he claimed.
Red rice was mostly eaten by Sri Lankans in the South and the Ratnapura district, he claimed.
Sri Lankans consume about 2.4 million metric tonnes of rice a year, according to government data. This works out to 200,000 metric tonnes a month.
People also consumed about 100,000 metric tonnes of wheat, he said.
About 65 percent of the rice grown by farmers was Nadu (white grain used for par-boiled rice) and about 15 percent was kekulu rice according to Minister Samarasinghe.
About 15 percent was Samba and about 4 to 5 percent was Basmati rice used in hotels, he said.
Last year the paddy harvest from two seasons was 4.9 million metric tonnes according to official estimates, which should have given 2.9 million metric tonnes of milled rice, he said.
This should have resulted in a 500,000 tonne surplus, he said.
When rice prices went up towards the end of the year, (which happens in many years) ahead of the Maha harvests due to import controls, a narrative was initially spread that a ‘mafia’ of millers was hiding stocks.
“Now we know that there are no stocks,” he said.
Minister Samarasinghe said mills in the North Central, East and South were all checked.
It is a basic economic principle taught in first year economics that when a price control is set below the market clearing price goods go off the shelves and a ‘black market’ is created at the market clearing price.
The black market at which red rice is available is now around 270 rupees a kilo, compared to a price control of 220 rupees.
The Consumer Affairs Authority had embarrassed several governments and put consumers in difficulty with its price controls in the recent past.
In 2021 as the central bank printed money and prices went up, the then government also slapped price controls. But later, then Trade Minister Lasantha Alagiyawanna, realized the problem and apologized to the public for putting them in difficulty.
“We admit that the price controls created shortages,” Minister Alagiywanna said at the time in a very rare occurrence. “We apologize for the inconvenience caused to consumers. But the government did this with the best intentions.”
Authorities initially claimed that Nadu rice was being hidden by the ‘mafia’ and slammed a price control for Red rice ten rupee below.
An examination of past data shows that red rice price overtook that of Nadu and went close to the premium Samba rice in December as New Year demand went up and stocks ran down.
By setting a ceiling price below the market clearing price, a government can create a shortage in any good.
Chicken were also implicated in the rice crisis, he said.
A legislator interrupted to suggest that perhaps Minister Samarasinghe’s statistics were not correct.
“I was just going to get to that point,” Minister Samarasinghe said. “On one side there was a red rice shortfall, because red rice was distributed to those who did not do it.
“In Sri Lanka there are 125 lakhs of layer chicken. They have 80 lakhs of chicks. This industry buys 300,000 metric tonnes of rice a year.”
Red and white raw rice is also made into flour. There was also an ornamental fish industry that needed feed, he said.
“So, our departments, our institutions should reduce this from the harvest,” he said.
However, chickens have been farmed in previous years as well. Sri Lanka has government controls not only imports of rice but maize as well, which is the key ingredient of animal feed.
The current administration also relaxed the import of rice, but did not take off the tax which amount close to 50 percent of world prices.
Latest News
Landslide RED warnings issued to the districts of Kandy, Kegalle, Kurunegala, Matale and Nuwara Eliya extended up to 1600 hrs today [07]
The Landslide Early Warning Center of the National Building Research Organisation [NBRO] has issued landslide early warnings to the districts of Badulla, Colombo, Galle, Gampaha, Kalutara, Kandy, Kegalle, Kurunegala, Matale, Matara, Monaragala, Nuwara Eliya and Ratnapura effective from 16:00 hrs on 06.12.2025 to 16:00 hrs on 07.12.2025.
Accordingly,
LEVEL III RED warnings have been issued to the Divisional Secretaries Divisions and surrounding areas of Pathadumbara, Kundasale, Pathahewaheta, Panvila, Medadumbara, Doluwa, Thumpane, Udunuwara, Deltota, Ganga Ihala Korale, Pasbage Korale, Yatinuwara, Hatharaliyadda, Ududumbara, Minipe, Udapalatha, Gangawata Korale, Akurana, Poojapitiya and Harispattuwa in the Kandy district, Thumpane, Udunuwara, Deltota, Ganga Ihala Korale, Pasbage Korale, Yatinuwara, Hatharaliyadda, Ududumbara, Minipe, Udapalatha, Gangawata Korale, Akurana, Poojapitiya and Harispattuwa in the Kegalle district, Alawwa, Rideegama, Polgahawela, Mallawapitiya and Mawathagama inthe Kurunegala district, Ukuwela, Naula, Yatawatta, Laggala Pallegama, Pallepola, Matale, Rattota, Ambanganga Korale and Wilgamuwa in the Matale district, and Hanguranketha, Mathurata, Nildandahinna and Walapane in the Nuwara Eliya district
LEVEL II AMBER warnings have been issued to the Divisional Secretaries Divisions and surrounding areas of Uva Paranagama, Badulla, Kandeketiya, Bandarawela, Soranathota, Hali_Ela, Meegahakivula, Ella, Welimada, Haputhale, Lunugala, Haldummulla and Passara in the Badulla district, Narammala in the Kurunegala district, Kothmale West, Norwood, Ambagamuwa Korale, Thalawakele, Kothmale East and Nuwara Eliya in the Nuwara Eliya district and Godakawela, Kahawaththa and Kolonna in the Ratnapura district.
LEVEL I YELLOW warnings have been issued to the Divisional Secretaries Divisions and surrounding areas of Seethawaka and Padukka in the Colonbo district, Elpitiya and Yakkalamulla in the Galle district, Mirigama, Divulapitiya and Attanagalla in the Gampaha district, Ingiriya, Bulathsinhala and Horana in the Kalutara district, Pasgoda and Athuraliya in the Matara district, Bibile and Medagama in the Monaragala district, and Kuruwita, Balangoda, Eheliyagoda, Pelmadulla, Kaltota, Kalawana, Openayake, Ayagama, Nivithigala, Imbulpe, Elapatha, Ratnapura and Kiriella in the Ratnapura district.
The Situation Report issued by the Disaster Management Center [DMC] at 2000hrs on Saturday [06] confirms that 607 persons have died due to the recent flooding and landslides while another 209 persons were missing.
The death toll in the Kandy district which one of the most affected districts has risen to 232, and 1800 houses have been fully damaged.The number of missing persons reported is 81
100,124 persons belonging to 29,874 families were being housed at 990 safety centers established by the government.
The government’s failure to act on expert warnings, including advance forecasts on Cyclone Ditwah, had led to the worsening of disaster impact, Udaya Gammanpila, leader of the Pivithuru Hela Urumaya, said at a press conference in Colombo yesterday.
Gammanpila accused the NPP government of ignoring 14 key preventive measures, despite alerts from the Meteorology Department, foreign experts, and the media.
Gammanpila said the government had failed to lower the water levels in reservoirs, dredge estuaries, and deploy the armed forces for canal maintenance. Local government bodies were reportedly sidelined, and that led to a delay in cleaning of drains. He said the government had also failed to evacuate people in a timely manner from seven districts identified by the National Building Research Organisation as landslide-prone. It had delayed declaring emergencies or curfews and the deployment of tri-forces to evacuate people in such areas.
Gammanpila said an experienced public official should have been appointed as Secretary to the President to mobilise the state machinery swiftly during the disaster. He said the government had not convened the National Disaster Council.
“These failures worsened the disaster, causing immense hardship, disruption, and loss of life and property to the people,” Gammanpila said.
The government has denied the Opposition’s claims.
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