Indian rice for Lanka despite export ban

Following President's request:

Chaminda Perera

COLOMBO: India has agreed to provide stocks of rice required by Sri Lanka despite the existing ban on domestic rice exports, following a request by President Mahinda Rajapaksa, said Trade Marketing and Consumer Affairs Minister Bandula Gunawardene. The Minister was speaking at a press briefing at the CWE Secretariat yesterday.

"Rice exports have been banned by India considering the escalating domestic demand and the world food shortage. But, India has agreed to export the required stocks only to Sri Lanka on the direct intervention of President Mahinda Rajapaksa", the Minister said.

The Minister said the Ministry in collaboration with the Foreign Ministry and the Presidential Secretariat will take all possible measures to import the required stocks before the Sinhala and Tamil New Year.

He categorically refuted allegations levelled by certain elements with narrow interests that the Government has been importing rice.

"The Government has not been importing rice since I assumed office", he said. "The Government has decided to use the diplomatic channel to secure the required stocks of rice from Pakistan too and our envoy in Islamabad has already begun talks with the Pakistani authorities, the Minister said.

Myanmar has also responded to the Government's request for adequate stocks of rice for Sri Lanka".

He said the Government is unable to determine a fixed maximum price for rice as adequate stocks are not available. When the adequate stocks of rice are made available, we will determine a fixed price beyond which no body can sell rice. The Consumer Affairs Authority would deal with traders who sell rice beyond the stipulated price margin as it has been declared an essential commodity by special Gazette Notification, the Minister said.

"Certain elements are making futile attempts to hide rice stocks in order to exploit consumers when stocks are depleting in the market. But this ploy will never materialise as the Government is contemplating to fix a maximum price for rice soon," the Minister said.

"Soaring world oil prices and the resultant food crisis have rendered developing countries helpless in maintaining stable prices for essential commodities," Minister Gunawardene said.

"The developed countries have resorted to utilising corn, manioc, coconut oil and many other food items as alternative energy sources in the face of ever increasing world oil prices".

"This food shortage has worsened with some developing countries imposing a ban on their food exports. The living standards of low income families in India and China has drastically improved with the economies of these countries being developed gradually.

Their demand for food and other requirements have doubled and this has also attributed to the food crisis," the Minister said.

"The change in the weather pattern has also attributed to this situation," the Minister said.

"A maximum fixed price has been imposed on packeted milk powder. Lak Sathosa and Co-operatives sell packeted full cream milk powder at Rs. 255. Another brand imported from Australia is also available at Lak Sathosa and Co-operative outlets at Rs. 245. The prices of many consumer items such as iodised salt, locally produced canned fish, dried chilies and sprats are much lower when compared to the prices of the previous year," the Minister said.

"The Ministry has made arrangements to sell a kilo of sugar at Rs. 48 through Lak Sathosa and co-operative outlets during the festive season. Dhall prices have gone beyond our control as it is not produced in Sri Lanka," the Minister said.

A request by the Poultry Producers' Association to boost the maximum price for a kilo of chicken was turned down following an analysis by the Ministry.

Ministry officials have come to know that certain traders are engaged in the selling of chicken much lower than the stipulated price.

The Minister said the Government plans to establish 306 Co-op Cities islandwide as outlined in the 2007 Budgetary proposals. We have achieved 80 percent of our target", he said.

"This is a difficult target, but Provincial Co-operatives Ministers and Commissioners have extended their fullest co-operation in this regard.

We are striving to set up a firm mechanism through which the consumer could buy essential commodities at reasonable prices", the Minister said.