iGrain India - Sri Lanka has recently imported 1,900 tonnes of rice from India between December 10 and 12, 2024, as part of efforts to address the ongoing rice shortage in the country.
This rice was brought in by private traders, with the Sri Lankan Customs Department confirming the import. In light of this, the Essential Food Importers and Traders Association has suggested that if the import duty on rice is reduced by Rs 15, traders could sell Nadu rice imported from India at Rs 220 per kilogram, which is the currently fixed highest retail price for imported Nadu rice.
However, once the imported rice reaches the wholesale market, it is expected to incur an additional 8-10% cost for transportation and distribution, raising the overall price.
On December 3, Sri Lanka's Cabinet approved the importation of rice until December 20, 2024, without requiring an import control permit, as part of measures to alleviate the shortage.
Furthermore, the Consumer Affairs Authority of Sri Lanka issued a gazette notification, which set the maximum retail and wholesale prices for both local and imported rice.
According to this notification, the highest retail price for imported raw (white) rice is Rs 210 per kilogram, while the highest retail price for imported Nadu rice is Rs 220 per kilogram. The retail price for Samba rice has been fixed at Rs 230 per kilogram.
This action comes amidst a significant rice shortage in Sri Lanka, with prices having risen due to limited availability of several rice varieties.
The government’s efforts to ease the supply and price pressures are part of a broader strategy to stabilize the domestic market.