Farmers’ Union Chair Questions Profiteering from Imported Nadu Rice

Anuradha Tennakoon, the Chairperson of the Farmers’ Union, has raised concerns about the excessive profits reportedly being earned by importers of Nadu rice. Speaking on the issue, Tennakoon highlighted that while Nadu rice imported from India can be sold for as low as Rs. 150 per kilogram, consumers in Sri Lanka are being charged Rs. 220 per kilogram, allowing importers to reap significant profits.

Call for Government Intervention

Tennakoon stressed the importance of protecting local farmers while regulating profits made from imports. He argued that if Nadu rice is being sold at Rs. 220 per kilogram, the government should ensure that the excessive profit margin is taxed or reclaimed to support the economy.

Cost Analysis

Tennakoon elaborated that the cost of Nadu rice in India is approximately Rs. 85 to Rs. 90 per kilogram in Sri Lankan currency. Including shipping and other associated costs, the imported rice could be sold at Rs. 150 per kilogram in Sri Lanka. However, the current market price of Rs. 220 indicates a significant markup benefiting importers at the expense of consumers.

Concerns over Local Stocks

The Farmers’ Union Chair also expressed scepticism regarding claims made by mill owners about buying local paddy stocks at Rs. 130 per kilogram. He alleged that most stocks were purchased from farmers at around Rs. 100 per kilogram, questioning the transparency of transactions between mill owners and the government.

Lack of Proper Oversight

Tennakoon criticized the failure of authorities to maintain accurate records of domestic paddy and rice stocks during the last harvest. He emphasized that the lack of proper monitoring by the Consumer Affairs Authority has allowed mill owners to manipulate the market and create artificial shortages.

Recommendations

To prevent such exploitation, Tennakoon suggested that the government take the following steps:

1. Tax Excessive Profits: Impose regulations to recover undue profits made by importers.
2. Record Keeping: Establish accurate and up-to-date records of domestic paddy and rice stocks.
3. Market Regulation: Enforce stricter controls to prevent artificial shortages and price manipulation by mill owners.

Conclusion

Tennakoon concluded that better oversight and fair practices would not only protect local farmers but also ensure affordable rice prices for consumers. He urged the government to act decisively to prevent further exploitation by market intermediaries and to strengthen the country's agricultural sector.