Government of Sri Lanka has decided the paddy procurement prices for the Maha season 2014-15(September – March) for two paddy varieties namely Nadu and Keeri Samba.
The Minister of Food Security was quoted as saying that the government is trying to raise the paddy purchase prices for both the varieties by almost 12.5%. It has decided to purchase the Nadu rice at $301 per ton and Keeri Samba at $376 per ton.
He also said that the government would begin the purchasing of Maha Rice for this week from over 180 storage facilities in the country.
The government has announced that it will be an intermediate between the farmers and the rice market to control the price falls during the harvest season. Prices of domestic rice have been increasing since May 2014 and reached at the peak in October 2014 at the rate of $600 per ton due to drought condition and inadequate supply.
But with the beginning of main Maha rice harvest season the condition totally reversed and the prices continues to decline after the Sri Lankan government has released 100,000 tons of rice into the market and the situation prevails till the ongoing 2015 main Maha season harvest.
Sri Lankan total rice production in 2015 is estimated at 2.7 million tons and import volume at 120,000 tons.