Sri Lanka sets floor prices for farm-gate paddy
Mar 02, 2018 05:22 AM GMT+0530 | 0 Comment(s)
ECONOMYNEXT - Sri Lanka is to purchase paddy (rought rice) at between 38 to 41 rupees a kilo, as the main Maha season harvests are beginning after better rains.
The Finance Ministry and Rural Economy Ministry has proposed to make purchases through the state-run Paddy Marketing Board to buy rice to set a floor price.
Nadu style rice will be purchased at 38 rupees a kilogram and the premium Samba/Kiri Samba will be bought at 41 rupees a kilo.
Sri Lanka's farmers do not grow internationally traded grades of rice due to years of protection and prices can fall in times of good harvests due to Sri Lanka rice being a 'non-traded' good despite the grain being an internationally traded commodity.
Sri Lanka is unable to export rice, despite fertilizer subsidies being given to bring costs down, partly due to palpability problems, according to industry analysts. (Colombo/Mar02/2018)