Wednesday 5th February, 2025
Rice is more than a food item for Sri Lankans; it is a kind of politico-cultural staple. Hence its ability to make or break governments. One of the key factors that led to the 1953 Hartal was a steep rise in the price of rice under a UNP government. The then Prime Minister Dudley Senanayake had to resign when protests went out of control. The SLFP-led United Front government came to power in 1970, promising to make rice freely available at affordable prices even if it were to be brought from the moon, of all places! However, that promise went unfulfilled, and rice shortages, among other things, led to the collapse of that dispensation.
Interestingly, an increase in the price of rice due to a subsidy cut, inter alia, under another UNP government, gave a big fillip to the early growth of the JVP as an alternative to the traditional leftist parties in the late 1960s. About six decades on, a democratically elected JVP-led government is facing a kind of existential problem over some unresolved issues concerning rice. It is a double whammy for the JVP; both rice consumers and paddy farmers are demanding that their competing interests be addressed.
Rice growers are threatening to march on Colombo and stage what they call Aragalaya II unless the government ensures that they get a fair price for their produce without further delay. They have been berating the government for serving the interests of some wealthy millers at the expense of the farming community. The Opposition, true to form, is fishing in troubled waters.
Opposition Leader Sajith Premadasa has been urging the government to set the guaranteed price for paddy at Rs. 140 a kilo. If the government acceded to his demand, how much would a kilo of rice be? Will Premadasa provide an answer?
True, the government is seen to be serving the interests of some big-time millers, who always have the last laugh. People voted the JVP-led NPP into office because they wanted it to deal firmly with all those who were exploiting them. The government has baulked at taking on the millers. However, its difficulties should be appreciated. It is in a Catch-22 situation. It cannot increase the purchase price of paddy without causing the rice prices to increase. Similarly, it cannot bring down the rice prices without lowering the paddy prices.
The government is in the current predicament because it is dogged by the slogans the JVP/NPP used during its opposition days to mobilise farmers against the previous administration. When current Deputy Minister of Agriculture Namal Karunaratne was in the opposition, he pressured the SLPP-UNP government to ensure that paddy fetched Rs. 150 a kilo. Now, he is drawing heavy flak from his erstwhile fellow agitators, who are demanding that the NPP government carry out what it asked its predecessor to do.
It behoves the government and agricultural experts to get their costing right. The average price of rice was about Rs. 170 per kilo when the NPP came to power late last year. The purchase price of paddy was below Rs. 100 per kilo at that time. Rice growers demanded higher prices for their produce, but they reconciled themselves to the market conditions, the implication being that they were either breaking even or earning profits at least marginally; otherwise, they would have taken to the streets, led by the JVP/NPP. The average price of rice increased beyond Rs. 250 per kilo subsequently and the government moved in to cap it at Rs. 230. Has the cost of producing paddy increased steeply since last year’s regime change for the protesting farmers to demand an increase in the purchase price of their produce?
It is only natural that farmers strive to get the highest possible price for their produce, but cost calculations should be done scientifically for a guaranteed price for paddy to be determined. The government should pluck up the courage to stop dilly-dallying and grasp the nettle. Procrastination will only make matters worse.
