Small rice mills and proper storage facilities vital

by Lalin Fernandopulle

More smallholder rice mills with proper rodent and moisture-free storage facilities are vital to bring about a win-win situation for paddy farmers and consumers who constantly grapple with prices, agri experts said.

Providing facilities to set up small rice mills across the country and good storage facilities will help solve the recurring problem of prices to a great extent. Farmers clamour for a better price for the produce while consumers want prices to be reasonable. The guaranteed price for rice is between Rs. 30-45.

However, farmers said the high cost of production is a major drawback to paddy farming which is becoming unprofitable. Consumers are jittery over the exorbitantly high rice prices currently ranging from around Rs. 75 to Rs. 100 per kilogram in the retail market.

They said there should be a price ceiling for rice and all essential food items. Food prices should not be a means to further political gains. Prices of food items are slashed before elections to appease voters.

Retailers said the depreciation of the rupee has pushed up prices of all imported food items. Agri experts said a kilogram of all varieties of rice could be sold at Rs. 10 less than the current price to consumers. A kilogram of bulk Basmati is Rs. 125, packeted Basmati Rs. 350.

Nadu ranges from Rs.65-70, Red raw rice Rs. 70, White raw rice Rs.65 and Samba Rs.90-100. The wholesale price of rice is around Rs. 5 less than retail prices. Experts said there should be a stable national policy for agriculture with a price formula for produce which will give a good return for farmers and a reasonable price to consumers. Secretary General, National Chamber of Commerce of Sri Lanka and former adviser to the Ministry of Agriculture, Sarath de Silva said allocation of more funds and promotion of private-public sector collaboration for research and development are essential to sustain agriculture and achieve self-sufficiency in food.

The private sector should help the government in the distribution of rice and promote exports,” de Silva said.

Rice cultivation occupies around 34 percent of the cultivated area in the country. Around 560,000 hectares are cultivated during the Maha season and around 310,000 hectares during the Yala season which makes up around on 870,000 hectares of paddy cultivation a year. About 1.8 million farmer families are engaged in paddy cultivation.

Sri Lanka currently produces 2.7 million tonnes of paddy annually and satisfies around 95 percent of the domestic need. Rice provides around 45 percent of the calorie and around 40 percent of the protein needs of a consumer. The per capita consumption of rice fluctuates at around 100 kg per year depending on the price of rice, bread and wheat flour.

Agri experts said the demand for rice will increase by around one percent a year and to meet this need rice production should grow by around three percent a year. Increasing crop intensity and average yield per acre will help achieve higher production, de Silva said.

The current cost of production is around Rs. 35 which includes labour, farm power and other inputs.