🌾 Rice vs. Paddy Prices: A Win for Farmers, Headache for Gov & Consumers?
⭕ The government has set a minimum certified purchase price for paddy (Nadu) at LKR 120, up from LKR 105 in 2024—a 14% increase 📈
⭕ Meanwhile, diesel prices have dropped 20% (LKR 358 → LKR 286), lowering transport and milling costs.
⭕ With inflation at -4%, overall prices have fallen compared to last year, making this one of the best deals for farmers in years.
⭕ However, when paddy was LKR 105, the government had to intervene and set a maximum rice price of LKR 230, yet millers refused to sell ❌
⭕ Now, with paddy at LKR 120, rice prices are expected to rise beyond LKR 230, adding pressure on consumers.
⭕ This artificially set LKR 120 price will backfire on the government later this year, as consumers are likely to face rice prices above LKR 250.
⭕ Without a long-term strategy to increase Sri Lanka’s rice yields per acre and reduce production costs, consumers will continue to be forced to pay higher prices for their basic food due to political and cultural reasons, all in the name of protecting farmers.