President Anura Kumara Dissanayake announced that the government will assist small and medium-sized rice mill owners in expanding their production capacity to help stabilize rice prices. This announcement was made during a meeting with rice mill owners at the Presidential Secretariat in Colombo yesterday (October 25).
The President emphasized that, given the government’s significant investment in agriculture, irrigation, and fertilizer subsidies, rice businesses have a social responsibility to ensure rice availability at fair prices.
According to the President’s Media Division (PMD), the meeting involved a detailed discussion on strategies to support smaller mill owners in boosting production to balance the market. President Dissanayake also underscored that no businesses would be allowed to exploit the market by unfairly hiking rice prices.
Analysts are voicing concerns over the influence large rice mill owners and third-party dealers hold on the rice market, which they say may harm both ends of the supply chain. These larger mill owners control significant portions of the rice production process, allowing them to set higher prices with limited competition. Additionally, third-party dealers, acting as intermediaries, often inflate prices further, impacting consumers and driving up costs.
This situation leaves farmers with lower earnings, as they are compelled to sell at prices set by these larger mills, while consumers face higher retail prices. Analysts argue that if this monopoly control and middleman influence remain unchecked, rice affordability could suffer, with consumers and local farmers bearing the brunt of the impact. They call for government measures to limit monopolistic practices and regulate third-party dealers to ensure the market is fairer, prices remain stable, and farmers receive equitable compensation for their products.
