CAA vs Millers’ Mafia
Complaints that some parts of the country are experiencing a shortage of rice may have prompted the Consumer Affairs Authority (CAA) to do what it did on Saturday. It inspected the warehouses of some big-time rice millers in Polonnaruwa. It is perhaps the first time the CAA officials have entered these silo complexes belonging to powerful political families including that of former President Maithripala’s sibling, Dudley, and former UPFA MP Siripala Gamlath.
The CAA says its inspections have yielded the desired results; the millers have agreed to release enough stocks of rice at prices determined by the government. Why did they wait until the CAA inspections to do so?
CAA Chairman Maj. Gen (retd.) Shantha Dissanayake has told the media his outfit has all necessary information about the stocks of paddy and rice the millers have in their possession, and action till be taken to ensure that there will be no shortage of rice.
The CAA seems keen to tame the Millers’ Mafia, and its action is reassuring to the public, but the proof of the pudding is said to be in the eating. Politically backed millers know more than one way to shoe a horse. The CAA should remain vigilant and take follow-up action if it is to achieve its goal.
Big-time millers create an artificial shortage of rice, weeks ahead of the commencement of paddy harvesting seasons, and governments import rice to meet the shortfall. The public consumes imported rice for want of a better alternative. Thereafter, the millers release some of their stocks into the market, causing the prices of rice to fall so that they can buy paddy at lower prices. The stocks of imported rice remain unsold in government warehouses and are disposed of as animal feed; the state suffers huge losses. In December 2019, more than 350,000 kilos of rice in Sathosa warehouses were found to be unsuitable for human consumption. The stock of rice had been imported in 2018, the All Ceylon Farmers’ Association told the media. This is the name of the game.
No campaign to librate the consumer and the farmer from the clutches of the Millers’ Mafia will succeed unless action is taken to make the rice and paddy markets highly competitive. The state should give small mills the much-needed leg-up by way of financial assistance. As we have pointed out in a previous comment, many small mills have gone belly up, unable to compete with the Millers’ Mafia. They purchase paddy with borrowed funds. Their bank loans are delayed and by the time they receive funds their big-time counterparts have finished purchasing paddy. Many farmers borrow from big millers to meet production costs and, therefore, have to sell their produce to the latter at low prices. They are caught in a debt trap. Others are dependent on the informal sector for funds. Microfinance companies are thriving at the expense of farmers. It is not out of any love for the farmer that the Millers’ Mafia has taken on the microfinance companies that exploit the farming community; it considers the latter an intruder.
Experts have warned of a possible worldwide food shortage owing to severe setbacks the agricultural sector has suffered across the globe during the last several months. The need for increasing the local food production cannot be overemphasised. The government has to look after the interests of the farming community in dire financial straits, unable to cover even the production costs due to exploitation by traders and millers and their inability to dispose of their produce at reasonable prices.
Vegetables are either left to perish on farms themselves or dumped on the roadside in areas like Dambulla as they cannot be sold although their prices remains high in other parts of the country. Ironically, this happens while a national cultivation drive is underway.
There is a pressing need for short-term and long-term action plans to help farmers, prevent waste of agricultural produce and keep the unscrupulous elements such as the Millers’ Mafia at bay. The Paddy Marketing Board, which has got a new lease of life needs to be revitalised further and its full potential tapped to protect both the paddy farmer and the consumer.
The CAA can only carry out limited operations. It, however, deserves praise for its inspections on Saturday.
Complaints that some parts of the country are experiencing a shortage of rice may have prompted the Consumer Affairs Authority (CAA) to do what it did on Saturday. It inspected the warehouses of some big-time rice millers in Polonnaruwa. It is perhaps the first time the CAA officials have entered these silo complexes belonging to powerful political families including that of former President Maithripala’s sibling, Dudley, and former UPFA MP Siripala Gamlath.
The CAA says its inspections have yielded the desired results; the millers have agreed to release enough stocks of rice at prices determined by the government. Why did they wait until the CAA inspections to do so?
CAA Chairman Maj. Gen (retd.) Shantha Dissanayake has told the media his outfit has all necessary information about the stocks of paddy and rice the millers have in their possession, and action till be taken to ensure that there will be no shortage of rice.
The CAA seems keen to tame the Millers’ Mafia, and its action is reassuring to the public, but the proof of the pudding is said to be in the eating. Politically backed millers know more than one way to shoe a horse. The CAA should remain vigilant and take follow-up action if it is to achieve its goal.
Big-time millers create an artificial shortage of rice, weeks ahead of the commencement of paddy harvesting seasons, and governments import rice to meet the shortfall. The public consumes imported rice for want of a better alternative. Thereafter, the millers release some of their stocks into the market, causing the prices of rice to fall so that they can buy paddy at lower prices. The stocks of imported rice remain unsold in government warehouses and are disposed of as animal feed; the state suffers huge losses. In December 2019, more than 350,000 kilos of rice in Sathosa warehouses were found to be unsuitable for human consumption. The stock of rice had been imported in 2018, the All Ceylon Farmers’ Association told the media. This is the name of the game.
No campaign to librate the consumer and the farmer from the clutches of the Millers’ Mafia will succeed unless action is taken to make the rice and paddy markets highly competitive. The state should give small mills the much-needed leg-up by way of financial assistance. As we have pointed out in a previous comment, many small mills have gone belly up, unable to compete with the Millers’ Mafia. They purchase paddy with borrowed funds. Their bank loans are delayed and by the time they receive funds their big-time counterparts have finished purchasing paddy. Many farmers borrow from big millers to meet production costs and, therefore, have to sell their produce to the latter at low prices. They are caught in a debt trap. Others are dependent on the informal sector for funds. Microfinance companies are thriving at the expense of farmers. It is not out of any love for the farmer that the Millers’ Mafia has taken on the microfinance companies that exploit the farming community; it considers the latter an intruder.
Experts have warned of a possible worldwide food shortage owing to severe setbacks the agricultural sector has suffered across the globe during the last several months. The need for increasing the local food production cannot be overemphasised. The government has to look after the interests of the farming community in dire financial straits, unable to cover even the production costs due to exploitation by traders and millers and their inability to dispose of their produce at reasonable prices.
Vegetables are either left to perish on farms themselves or dumped on the roadside in areas like Dambulla as they cannot be sold although their prices remains high in other parts of the country. Ironically, this happens while a national cultivation drive is underway.
There is a pressing need for short-term and long-term action plans to help farmers, prevent waste of agricultural produce and keep the unscrupulous elements such as the Millers’ Mafia at bay. The Paddy Marketing Board, which has got a new lease of life needs to be revitalised further and its full potential tapped to protect both the paddy farmer and the consumer.
The CAA can only carry out limited operations. It, however, deserves praise for its inspections on Saturday.