The Government has approved a proposal to convert 30,000 tons of paddy held by the Paddy Marketing Board (PMB) into rice, in a move aimed at supporting the Government’s paddy procurement program and ensuring adequate rice supplies to the market.
The decision follows a recommendation made at the 34th meeting of the Food Policy and Security Committee held on 22 July 2022, which proposed converting PMB-owned paddy stocks into rice through the Co-operative Wholesale Establishment (CWE).
Accordingly, the Cabinet of Ministers last week approved a joint proposal submitted by Agriculture, Livestock, Land and Irrigation Minister K.D. Lalkantha and Trade, Commerce, Food Security and Co-operative Development Minister Wasantha Samarasinghe.
Addressing the weekly post-Cabinet meeting media briefing, Cabinet Spokesman and Minister Dr. Nalinda Jayatissa said, under the approved arrangement, the CWE will invite expressions of interest (EOIs) from rice millers registered with the PMB to process rice from the 30,000 tons of paddy.
The processed rice will be supplied in 5 kg, 10 kg, 25 kg, and 50 kg packages, allowing the Government to distribute the stocks through multiple retail channels. A Special Price Committee will determine the appropriate conversion ratio from paddy to rice and the corresponding price of the processed rice. The Committee will comprise representatives of the PMB, CWE, Lanka Sathosa Ltd., the National Institute of Post Harvest Management, and the Hector Kobbekaduwa Agrarian Research and Training Institute.
Following processing, the rice will be released to consumers through Lanka Sathosa outlets, the cooperative network, and other private-sector distribution channels.
He said the move is expected to facilitate the Government’s paddy procurement mechanism by creating additional storage capacity for newly purchased paddy, while simultaneously releasing existing stocks into the market.