September 15, Colombo (LNW): A rift within Sri Lanka’s rice industry has led to a notable shortage of Keeri Samba rice in Pettah, one of the country’s busiest wholesale trading hubs, as traders refuse to sell the premium variety due to price disputes.
According to several wholesalers operating in Pettah, they have temporarily halted sales of Keeri Samba rice after receiving stock from suppliers at prices exceeding the government’s mandated maximum retail price of Rs. 260 per kilogramme.
With the wholesale acquisition cost already higher than the price ceiling, sellers argue that continuing to trade would result in significant financial losses.
This impasse has trickled down to the retail level, with many shopkeepers also withdrawing Keeri Samba from their shelves, citing unsustainable costs and shrinking profit margins.
In response to the growing tension, the United Rice Producers’ Association has urged the government to reconsider the imposed price controls on Samba and Keeri Samba varieties, claiming that the current cap is no longer viable given rising production and transportation costs. They argue that maintaining an artificial price limit is distorting the market and discouraging fair trade practices.
However, not all stakeholders share this view. The Sri Lanka Small and Medium Scale Paddy Mill Owners’ Association has issued a warning against lifting the price cap, alleging that powerful millers are manipulating the market to engineer an artificial scarcity.
According to the association, such tactics are designed to drive prices higher and maximise profit at the expense of both consumers and small-scale producers.
Amidst the ongoing debate, the National Farmers’ Union has called on the government to step in urgently and mediate a resolution. They warn that continued inaction could lead to widespread supply chain disruptions, placing additional strain on both farmers and consumers, especially as demand increases during the festive season and upcoming religious observances.
