COLOMBO (AsiaNews) – In Sri Lanka – various humanitarian organizations report – the threat linked to the rice monopoly is becoming more and more concrete, a danger for farmers and consumers while the government seems to snub the emergency and has so far not adopted any measures to control at least 10% of the annual production from the country’s fields. Today, most families on the island spend around 75% of their income to purchase essential foodstuffs and the per capita consumption of rice stands at around 125 kg per year.
The government’s choices. In 2023, 28,380 tonnes of rice were imported, at a cost of 6,091 million rupees (just under 19 million euros). In the past, each government in power has focused on providing field workers with subsidized fertilizers and pesticides, waiving farmers’ loans, and ensuring better prices for agricultural products, including rice, the staple food of Sri Lankans .
The cost of producing one kg of rice. Includes machinery, electricity, labor and distribution expenses. The cost is around 25 rupees (just under 8 euro cents). Given the government-guaranteed price of 100 rupees per kg (0.31 euro cents), rice can be sold to consumers at 160-175 rupees per kg (about 0.50 cents). Currently, however, 1 kg of rice is sold for 220 rupees (0.68 cents). From this perspective, the government should intervene: if relief were granted, rice could be sold to consumers at 150-160 rupees per kg. As of today, the Food Department is not functioning, the cooperative societies are defunct and the Paddy Marketing Board it has become a slow and inefficient institution. Owners of large-scale mills make exorbitant profits during adverse weather conditions, including floods and droughts.
The per capita consumption is 125 kg per year. According to the former Director of Agriculture, KB Gunaratne, “since the per capita consumption of rice in Sri Lanka is around 125 kg per year, to achieve this goal it is necessary to produce 200 thousand additional tonnes every month, for a total of 2.4 million tons per year”. According to expert assessments, to increase production in rice fields approximately 1.3 million hectares should be cultivated annually during the Yala (May to August) and Maha (September to March) seasons. Currently, around 3.53 million tonnes are produced, but they would not be sufficient for the needs. Sri Lanka was previously self-sufficient between 2010 and 2013 but has not achieved self-sufficiency since then.
What the government could do. Interviewed by AsiaNews farmers Haramanis Appuhamy (53 years old), WM Siriyalatha (42) and Punchi banda Wijepala (38) from the Polonnaruwa district, in the north-central province, the “rice bowl” of Sri Lanka, explain: “To provide rice to a controlled price, the government could provide transportation facilities for rice distribution and facilitate the establishment of rice fields in major producing districts such as Ampara, Batticaloa, Anuradhapura, Polonnaruwa, Kurunegala, Hambantota and Mahaweli B, C, L and M zones.”
The opinion of economists. Economists Dayantha Mendis and Sudesh Mayadunne warn that “the so-called ‘rice monopoly’ could be stopped if the government took steps to control at least 10% of the country’s annual production. Currently, the monopoly is in the hands of a few private mill owners closely linked to prominent politicians. As a result, rice farmers and consumers feel helpless in the face of this situation.”bAccording to a recent joint survey by World Food Programme (WFP), in Sri Lanka the number of families suffering from food insecurity increased from 17% to 24% in the space of six months. The share includes 51% of real estate households, 51% of rural areas and 15% of urban areas. Some families now spend 75% of their income on basic food supplies. According to government statistics, a family of four needs 120 thousand rupees a month (about 374 euros) for food.
* Arundathie Abeysinghe – Asianews
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