ECONOMYNEXT – The possibility of using piled up rice stocks in warehouses for animal feed was discussed at a meeting at meeting of agricultural sector stakeholders with Presidential Chief of Staff Sagala Ratnayake, a statement said.
Sri Lanka is just starting to harvest the paddy from the main (Maha) cultivation season but stocks from the previous Yala season are in some warehouses.
“The possibility of selling old rice in warehouses as animal feed was also discussed, with the potential to increase the price of rice and decrease the prices of eggs and chicken in the market,” the statement said.
Due to decades of protectionism and political interference which farmers do not produce export grade rice unlike their counterparts in India and Pakistan, and there are few takers outside of domestic consumers.
Prices are also generally higher than the world due to protectionism, hurting the poor.
Sri Lanka’s poultry farmers are now importing maize and wheat to make chicken feed, while excess rice is piled up at warehouses because the Consumer Affairs Authority, had banned the use of rice for animal feed by gazette, blocking market based solutions to economic problems.
The CAA which usually sets price controls and creates shortages and blackmarkets.
The CAA has triggered a crisis in the egg sector with price controls driving farmers to kill layer chicks for meat, and abandoning the growing of new flocks, according to industry players.
Low demand for day old chicks then led to a reduction in the parent stock population as hatcheries lost the market and stopped maintaining parent stocks. (Colombo/Feb18/2023)