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Last updated: 21 April, 2008 - Published 17:40 GMT
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Rice traders 'forced to sacrifice'
Rice in Colombo market (photo Elmo Fernando)
Farmers dispute rice mill owners' and traders' argument that they were forced to sacrifice due to the price control

Wholesale traders and rice mill owners are forced to sacrifice to meet the government-enforced price control, a rice traders' association said.

Dudley Sirisena, president of All Ceylon Rice Mill Owners Association (ACRMOA), told BBC Sandeshaya that the traders are struggling to meet government demand.

Nearly 150 traders who met Trade Minister Bandula Gunawardene on Monday have agreed to make rice available for the market.

Lost millions

“I know some traders who have lost Rs. millions,” Mr. Sirisena told BBC Sandeshaya.

The trading in Colombo wholesale market was stopped as the rice price crisis deepened on Monday.

 The rice mill owners have already reduced the price paid for farmers to Rs.25-26 per paddy kilogram
Farmers' union leader

However, angry labourers who have lost their daily income of nearly Rs. 500 told BBC’s Elmo Fernando at Moor Street market that many traders have hidden their stocks.

The farmers also disputed rice mall owners’ argument that they are losing money due to the price control.

Production cost

MK Jayatissa, president of Progressive Farmers Association (PFA) in Polonnaruwa told BBC Sandeshaya that the traders have only lost some profit but not losing money at all.

He categorically rejected Mr. Sirisena’s estimate that farmers only need Rs. 14 to produce pone kilogram of paddy.

Labourers at Colombo market (photo Elmo Fernando)
Angry labourers say the traders have hidden rice due to price control

It would cost the farmers, the PFA said, at least Rs. 22 to produce a kilogram of paddy.

ACRMOA chairman, Dudley Sirisena, told BBC Sandeshaya that the wholesale traders pay nearly Rs. 30 per paddy kilogram to the farmer.

But Mr. Jayatissa says the farmers were made scapegoats by the rice mill owners.

“The rice mill owners have already reduced the price paid for farmers to Rs.25-26 per paddy kilogram,” he told BBCSinhala.com.

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