Sri Lanka rice update

A paddy harvest of 2.6 million metric tons is expected from the current Maha season harvest. The total paddy output of the year is expected to be 4 million metric tons. Unlike previous years, there is no maximum limit on paddy purchased from farmers. Eighty paddy purchasing centres are operating islandwide with a number of additional storage centres opened. Despite much outcry on the contrary, current purchase prices for paddy is set to provide maximum benefit to the farmer while offering reasonable utility to the consumer. The minimum purchase price of 1 kilo is currently Rs.28 for Nadu and Rs.30 for Samba. A further increase in purchase price will raise the retail price to over Rs.80 per kilo, causing much discomfort to the consumer. Additional Secretary (Services), Ministry of Agriculture Development and Agrarian Services, M.H. Muineed, made these comments in answer to allegations raised by the Opposition that had they been in power, the purchase price would be in a range of Rs 35 - Rs 45. He further stated that complaints of paddy prices as low as Rs.18 in certain areas was due to the low quality, specifically undried paddy being put up for sale immediately following harvesting. To prevent a paddy shortage arising due to wholesalers withholding stock, a buffer stock of 15 percent of the monthly consumption need is to be maintained this year. The aggregate amount is far higher than last year’s annual buffer stock of 50,000 metric tons. Under the ‘Api Wawamu Rata Nagamu’ food production program, 2010 is set to see much expansion in the agriculture sector. A sum of Rs. 750 million has been allocated for this year’s projects by the Treasury. Special prominence is to be given to development in the North under the ‘Uthuru Vasanthaya’ program. A sum of rupees ninety thousand has been allocated for this purpose. Eighteen thousand hectares of abandoned paddyfields are planned to be cultivated this year.