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Rice mills close due to release of cheaper imported rice

Nearly 300 rice mills throughout the country have been closed due to the release of cheaper imported rice stocks to the market. Rice mill owners have complained that they have been compelled to close their mills as locally milled rice stocks are not moving due to the stiff competition offered by cheaper imported varieties.

Mill owners said that they are saddled with large paddy stocks purchased from farmers during the previous Maha season. The present price of a Kilo of milled rice is around Rs. 28.00 and they will be at a loss, if they sell rice below that price after purchasing the paddy from farmers at Rs.13 per kilo, they said.

Imported rice has depressed local prices and local paddy prices have also come down. Farmers and mill owners will face a severe crisis, if the rice imports are not restricted, they have warned.

According to the Secretary of the Polonnaruwa District Rice Producers Association H. M. Ratnayake, over 200 rice mills in the Polonnaruwa district have already been closed down as a result.

Mill owners in Maradhagahamula area have faced severe hardships in selling their rice stocks, Secretary of the Maradhagahamula United Rice Producers Association I. A. Henry Chandrasoma said.

A senior Agriculture Ministry official contacted by the 'Daily News', said the Ministry has implemented a new purchasing program for the Yala paddy crop to ensure farmers a minimum price of Rs.13 per Kilo.

The special program named "Alavi Saviya" has been implemented by the Ministry to safeguard the farmers who are exploited by the private traders during each harvesting season.

Under the Alavi Saviya program, a Rs. 40,000 loan will be advanced to the farmers for a maximum of 4000kgs of paddy. Farmers who have cultivated paddy on 1 to 3 acres of land are entitled to obtain this credit facility. A 2 per cent monthly interest will be charged from them for the loan which can be repaid after selling their crops later on.

"Therefore farmers have no need to sell their paddy below Rs.13 per kilo and the local paddy prices will not go down as the mill owners have highlighted." In a situation where the paddy prices have gone down below Rs.13, arrangements will be made to store the paddy harvests of farmers and release them to the market when the paddy prices pick up. This move will safeguard the farmers and mill owners, he said. (uk)

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