No international market for SL rice

Rice export was not possible as there was no international demand for Sri Lankan ordinary rice varieties, Agriculture Ministry Secretary Wijerathne Sakalasooriya told The Island yesterday (02).

He noted that the quality of milled rice produced in Sri Lanka was lower than that of average quality rice traded as mass exports.

"Other competing countries offer better quality rice of preferred varieties at the same price," he said.

"Sri Lanka is a high cost rice producer. We don’t earn even one dollar per one kg of rice in the international market. Cost of production of paddy is more expensive and we need two kilos of paddy to produce one kilo of rice that conform to international standards," he added.

"But there is a high demand for the Sri Lankan traditional ‘health rice such as Alhal, Suwedal, Rathhal’ in the world market specially in USA, UK and Europe," Sakalsooriya said.

Currently, Sri Lanka was engaged in exporting to small niche markets and there was a limited demand for ‘Samba’ and ‘red rice’ and another limited market for special varieties such as red pericarp long grain rice, he added. "We have begun some awareness and marketing campaigns in foreign countries to convince the international rice buyers of the value of our rice. We are encouraging our local farmers to cultivate rice varieties with medicinal value."

Meanwhile, the government has suspended export of rice to other countries until the next Maha Season harvest, due to the inclement weather which destroyed thousands of acres of cultivated paddy lands in the North-Western, North-Central Province and some areas in the Southern province.

More than 50,000 acres of rice cultivation were affected by floods in the Anuradhapura, Polonnaruwa, Puttalam, Ampara and Trincomalee districts and around 100,000 acres of paddy land in the Anuradhapura, Polonnaruwa, Kurunegala Puttalam, and Trincomalee Districts were destroyed by the drought earlier. The loss of paddy harvest amounted to 400,000 MT of paddy from the drought

Sri Lanka to increase rice fields

Sri Lanka is likely to have a surplus of rice as paddy fields neglected owing to war in the north and east return to full production, government and private sector officials said. Eastern province governor Mohan Wijewickrema said previously neglected paddy fields in the region, which has about a quarter of the island's paddy land, are now under cultivation. About 83,000 acres of land in the east, abandoned for 20 years or more because of the ethnic war, is now back in production, while many irrigation tanks have been repaired. Free seeds had been given to farmers along with other support to displaced farmers to prepare land, Wijewickrema said. Paddy lands in the north are also being cultivated following the end of the ethnic conflict last May, which has resulted in an economic revival in the north-east region as well as the rest of the country. "With the expected production in the north I'm sure we can have a surplus," Wijewickrema said. Wijewickrema was speaking at the Ceylon Chamber of Commerce to announce the launch of an agricultural trade exhibition, 'Ag-Biz East', aimed at linking the region's farmer with business. The July 16-17 event to be held in the eastern port town of Trincomalee is organized by the National Agribusiness Council and the United States Agency for International Development with provincial government support. Unless there is a shift in food consumption patterns, ways to manage the excess production would have to be found, Wijewickrema said. "Our agricultural strategy in the long-run will be shifting from subsistence agriculture to commercially-oriented agriculture," he said. "High-value crops must replace traditionally low-value crops. It may be necessary to diversify rice cultivation within the national policy." Anura Ekanayake, chairman of the Ceylon Chamber of Commerce, said the end of the war offers opportunities to exploit the north-east region's resources with modern technology. "There has been a sharp increase in agricultural production, not only rice but also vegetables and other crops," he said. "So much so, concern has been expressed that we might face a glut, not perhaps this year, but most certainly the next year."

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.