Severe rice shortage hits Sri Lanka: Prices soar beyond control

Consumers and vendors report a severe shortage of all types of rice in Sri Lanka, including the widely consumed Nadu and Kekulu varieties.

Although the shortage has persisted for about two months, it has now worsened significantly, with consumers alleging that rice is being sold at prices exceeding government-controlled rates.

Supermarkets across the country are facing a severe rice shortage, with some stores running out of stock entirely. In certain outlets, customers are restricted to purchasing only three kilograms of rice per bill.

Wholesale traders in Pettah also confirm the shortage, reporting that the supply of rice from large-scale rice mills has dropped by approximately 60%.

As an immediate solution, importers in Pettah have ordered between 25,000 and 30,000 metric tons of rice from India, according to the Essential Food Importers’ Association.

This shipment is being facilitated following the government’s decision to allow the private sector to import rice. However, importers claim the permitted timeframe until December 31, 2024 is insufficient, allowing them to import only limited quantities.

The imports include Nadu, Kekulu, and Samba rice.

Consumers report that approximately 90% of Lanka Sathosa outlets nationwide are out of rice.

Current retail prices are as follows:  

• White Kekulu: Rs. 245-250 per kilogram
• Red Kekulu: Rs. 245-247 per kilogram
• Nadu rice: Rs. 245-255 per kilogram
• Samba rice: Rs. 260-265 per kilogram
• Keeri Samba: Rs. 275-282 per kilogram

Retailers note that they purchase white Kekulu rice at Rs. 240, red Kekulu at Rs. 242, Nadu at Rs. 240, Samba at Rs. 255, and Keeri Samba at Rs. 270 from wholesalers or mill owners.

They argue that selling rice at government-controlled prices is impossible under current conditions.

Transporting rice from Colombo to a location about 50 kilometers away incurs an additional cost of around Rs. 5 per kilogram, leading retailers to add a margin of around Rs. 3. Consequently, all types of rice are sold above the controlled prices.

Retailers further mention that fear of penalties for selling rice above controlled prices has forced many to stop selling rice altogether.

U.K. Semasinghe, President of the Small and Medium Scale Rice Mill Owners’ Association in Sri Lanka, warned that unless the government takes steps to facilitate rice imports within the next two weeks, a severe rice shortage is inevitable.