Prices of essential food items should stabilise

By Ananda WEDAARACHCHI
 

The prices of all essential food items except rice had soared during the last three months. Vegetables, Fish, Chicken, Potatoes and onion prices came down, when the produce from the North and the East was channelled to the Colombo market after the LTTE terror was uprooted in May 2009.

During the 2010 April new year season with election fever and unfavourable weather running high in the country the prices of all essential food items shotup. Due to the sound management of the Agriculture and Trade sectors by Former Agriculture Minister Maithripala Sirisena and Trade Minister Bandula Gunawardena the rice prices remain unaffected.

The monthly bulletin issued by Hector Kobbekaduwa Agrarian Research and Training Institute - HKARTI - in its March 2010 issue states: "... Bumper paddy harvest received in the market from Eastern Province, Government paddy purchasing programme has been implemented in all major rice producing areas. The lowest prices for Nadu and raw white within the period of last two years have reported during the month due to continuous supplies to the market.

According to the latest crop forecast report of Department of Agriculture the sown extent of paddy reported for Maha 2009/2010 season is 686,692 ha it is the highest ever recorded area cultivated in recent history. Eastern province shows a marked improvement in this season.

Higher paddy production would be expected from many major paddy producing districts such as Polonaruwa, Anuradhapura, Moneragala and Mahaweli systems.

In Mahaweli system C and H areas paddy yield in the range of 5 to 6 mt/ha paddy production of 2009/10 maha season was estimated at 2.59 million mt equivalent to 1.63 million mt; of milled rice and 9 percent more than in previous maha season...." Agriculture Development and Agrarian services Ministry secretary K.E. Karunatileka last week said Sri Lanka would commence exporting rice shortly.

Referring to the rice prices the HKARTI bulletin in its June 4 issue said that the wholesale and retail prices have declined due to continuous supplies. Samba rice recorded the highest price decline-while the lower rice prices will prevail further. C. Nagaratna, local businessman in Katuwana, Walasmulla said prices of all varieties of rice had declined sharply.

According to him the prices for one kilo of white kekulu Rs.40, Red Kekulu Rs.40 - 50 and Samba Rs.60, while the purchasing price of one kilo of paddy is Rs.23 in Hambantota. The prices of Samba, Nadu and Kakulu in Super Market chains and the open market are less than Rs.75 per kilo.

The authorities are much concerned about the drop of paddy purchasing price. The Paddy Marketing Board announced last Thursday that they purchase paddy at a guaranteed price directly from the farmers. Accordingly a kilo of Samba is purchased at Rs.30 and a kilo of Nadu at Rs.28.

A farmer can sell a maximum of 1,000 kgs of paddy to the Board. In the meantime the Ministry of Cooperative Development and Internal Trade and Ministry of fisheries have taken a series of measures to curb the rising prices of vegetables, Fish and chicken.

The Cooperative and Internal Trade Ministry said it could supply essential items at lower rates of 15 percent less than those of the private sector, if the government import them direct from the world market. The Trade Ministry had already ordered number of essential food items from the world market.

The Trade Minister announced that 3,000 m.tons chicken would be imported from Brasil. Trade Minister Johnston Fernando said that country needs 12,000 m.tons of chicken while the local supply is limited to only 8,100 m.tons.

Chicken prices soared between Rs.490 - Rs.600 while the controlled price was Rs.350 per kilo he said. Fisheries Minister Rajitha Senaratne said that fish would be imported to offset the impact of soaring fish prices. All 'Laksala' outlets will have fish outlets in the future, he said. Sri Lanka was self sufficient in liquid milk in the 60s.

The shortsighted policies such as import of milk powder destroyed the local milk industry. More than Rs.3 billion are spent annually for importing milk powder. In the past there were times even "kankum" was imported from India which was detrimental to the country's economy.

The price of a kilo of 'Balaya, Kelewalla, Thora, Paraw fish in the open market was between Rs.600 - Rs.800. Prices of small fish varieties such as Salaya, Hurulla have soared to Rs.250 or more.

According to the traders upcountry vegetable supplies such as Carrot, Leeks, Beetroot, Butter beans, Green beans, Cabbage, Tomato and Potatoes supplies to Colombo Market have decreased during the last few months.