Sri Lanka to export 200,000 Mts of paddy to India

Uditha Kumarasinghe

COLOMBO: The Government through the Agrarian Services Ministry has made arrangements to export 200,000 Metric tons of paddy to India and several other countries by 2007.

The Government intends to obtain nearly Rs. 2,500 million in foreign exchange earnings by exporting the 200,000 Metric tons of paddy, Agrarian Services and Farmer Community Development Minister S.M. Chandrasena told the Daily News.

Under the programme implemented by the Ministry, the initial shipment of 50,000 Metric tons of paddy was dispatched to India on August 17. Export of paddy stock would bring Rs. 600 million in foreign exchange earnings to the country, he said. The Government is now exploring the possibilities of exporting paddy to several other countries too.

According to the Minister at present there is a 150,000 Metric tons paddy surplus in Government warehouses. The purchases were made during the past harvesting seasons. Such a huge paddy surplus has not been recorded in the recent past.

These paddy stocks stored in warehouses have to be cleared to store paddy purchased from farmers during the coming Yala season.

Having considered the situation, the Government has decided to export paddy to India and also discuss with several other countries on the possibility of exporting paddy to those countries as well. The Government has to incur almost a five rupee loss per Kilo in the export of paddy.

However, paddy is a perishable crop which can be stored for a long time. Therefore this move will not cause a huge loss.

Due to this programme, for the first time, local paddy farmers will be placed in the honoured position of obtaining foreign exchange earning by exporting their paddy. Even today 70 per cent of country's population are dependent on agriculture and various agro based industries, the Minister said.

The Government believes that if it can successfully export paddy to India, other countries in the region too will be encouraged to purchase paddy from Sri Lanka, the Minister said.