Frontline Socialist Party Propaganda Secretary Pubudu Jagoda raised alarming concerns regarding the ongoing rice shortage crisis in Sri Lanka. Addressing a press conference held at the party headquarters in Nugegoda last Thursday, Jagoda said that despite the importation of 79,000 metric tons of rice to address the crisis, reports indicate that a significant portion of these imported stocks is being diverted for the production of flour and animal feed, further exacerbating the shortages within the market.
Jagoda highlighted that records from the Department of Agriculture show no production shortage of rice in the country. With an annual requirement of 2.4 million metric tons, Sri Lanka’s rice harvest for 2023 was reported at a surplus of 4.8 million metric tons, with 4.2 million metric tons forecasted for 2024. However, most of this surplus is reportedly held by major rice mill owners, leaving farmers without adequate stock.
“Currently, the market is facing a shortage of Nadu and Kekulu rice. Reports indicate that 77% of the recently harvested rice is Nadu, suggesting that an invisible hand is preventing rice from reaching consumers. The government needs to investigate who is controlling the flow of rice into the market,” said Jagoda.
The growing tension between rice millers and the government has surfaced following a price hike from 220 to 230 rupees, after which millers agreed to release rice stocks to the market. Jagoda pointed out the contradiction in claiming a shortage while simultaneously making rice available upon price increases.
Despite government efforts to address the crisis through imports, the recent Customs reports revealed that the rice shortage persists. Information suggests that the imported rice is not being distributed effectively, as companies have prioritized producing flour and animal feed over supplying the market.
Jagoda emphasized the urgency for government action: “This serious situation requires immediate intervention. Although the government aims to regulate the rice market, only 780 metric tons have been managed through state channels—barely 10% of the daily requirements.
“The Minister of Trade and Commerce has confirmed that all government tenders for rice imports have been rejected, prompting calls for an investigation into how private tenders were approved. Jagoda expressed concerns over potential negligence or hidden agendas that may have undermined the government’s capabilities.
“As the Frontline Socialist Party we continue to advocate for breaking the monopoly held by major rice wholesalers. These wholesalers have secured funds through loans from state banks, which holds critical data related to quantities purchased and financial transactions.
“There must be a thorough investigation to protect farmers, retail vendors, and consumers from falling under the control of a small group of businesses,” Jagoda concluded, urging swift action from the government to resolve the ongoing rice crisis.
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