iGrain India - The Sri Lankan government has extended the temporary suspension of the ban on rice imports, allowing private traders to bring in rice without a license until January 10, 2025.
This extension follows the Union Cabinet's initial decision to lift the ban until December 20, which was motivated by concerns over rice shortages and rising prices in Sri Lanka.
The situation worsened due to damage to the domestic paddy crop caused by torrential rains and severe floods in the previous month, which reduced rice production.
Since the lifting of the ban, private traders in Sri Lanka have imported around 36,000 tonnes of rice. The government’s extension of the license-free period is expected to further increase rice imports, particularly from India, where rice is relatively cheaper.
Indian rice can be delivered quickly to Sri Lanka by sea, and Sri Lankan traders are especially focused on sourcing Nadu rice from India, which is highly popular in Sri Lanka.
Industry analysts predict that by the January 10 deadline, Sri Lanka’s rice imports could exceed 50,000 tonnes. Meanwhile,
the Indian government has removed all restrictions, controls, and duties on the export of non-Basmati white and Sela rice, further facilitating these imports.