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Home Business & Finance Economic Policies

Sri Lanka to provide insurance scheme for kithul, coconut and palm tappers todayheadline

April 2, 2025
in Economic Policies
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ECONOMYNEXT – Sri Lanka’s Food Policy and Security Committee has recommended the importation of rice in the near future to ensure an uninterrupted supply for consumers amid an impending shortage due to adverse weather conditions in the last cultivation season.

Rice shortage during the upcoming festive season could be detrimental to President Anura Kumara Dissanayake-led National People Power’s campaign in the upcoming May 6 local government polls.

People have been grumbling over the shortage of coconut and rice which are essential to make traditional milk rice during Tamil and Sinhala new year.

“A notable increase in rice prices has been observed in the market, along with reports of shortages in certain rice varieties, despite the current harvest season,” the President Media Division (PMD) said in a statement.

“Given this situation, discussions were held regarding the need for the Cabinet to prioritize the maintenance of sufficient stock levels through rice imports.”

During the discussions, with the participation of Agriculture Minister K.D. Lalkantha and Trade Minister Vasantha Samarasinghe, it was revealed that due to excessive rainfall this year, crop damage occurred on two occasions, leading to a significant reduction in the expected harvest.

“Furthermore, during the meeting it was stated that the improper use of rice for animal feed is another major reason contributing to the rice shortage,” the PMD said.

“As a result, the Committee also focused on the importation of broken rice for animal feed and the use of alternative feeds to mitigate the impact on livestock production.”

“Accordingly, the Food Policy and Security Committee approved the formation of a Committee, led by the Director General of Agriculture, to oversee the importation of the required quantity of broken rice through proper mechanisms.”

​In late 2024, Sri Lanka faced a significant rice shortage due to heavy rains that destroyed over 20% of the nation’s paddy cultivation, particularly impacting key agricultural districts like Ampara and Anuradhapura.

This natural disaster led to concerns about rice availability and rising prices, prompting public dissatisfaction, especially since President Dissanayake had previously pledged to reduce rice prices. ​

In response, President Dissanayake engaged with small and medium-scale rice mill owners to ensure a continuous and affordable rice supply.

Discussions focused on enhancing storage facilities to prevent future shortages and considering the implementation of a QR code system to streamline fertilizer subsidy distribution, aiming to boost domestic agricultural production.

Despite all these efforts, critiques emerged regarding the adequacy of these measures, with some arguing that the daily release of 200,000 kilograms of rice through state outlets was insufficient to meet the country’s demand. (Colombo/April 02/2025)


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Tags: coconutinsurancekithulLankaPalmProvideschemeSritapperstodayheadline
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