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Leading rice miller stops paddy purchasing citing losses, PMB still out of picture
By Sanath Nanayakkare
Leading rice miller, Lankeshwara Mithrapala says he has suspended purchasing paddy because it is not proper to purchase paddy from farmers at prices lower than Rs. 120 per kilo, and if he did purchase at that price, he would have to absorb a loss of Rs. 23 from each kilo of rice.
This is happening at a time the government has declared a certified price for paddy at Rs. 120 and the state-run Paddy Marketing Board (PMB) is keeping itself completely out of its main task of purchasing paddy from farmers to ensure a competitive and fair price to them.
When asked if there was some connivance between government officials and private millers to enable the purchasing of paddy at the lowest prices imaginable, Mithrapala said,” We don’t want anyone’s help to run our rice mills. But we can’t buy paddy at Rs. 120 per kilo and let the end-consumer buy a kilo of rice at Rs. 220-230 because of the loss we have to absorb in the process. There are various other brands, Nipuna, Araliya, Lak Sahal etc. If they could buy paddy at Rs. 120, they would because this is a competitive business. But they can’t buy at that price either because that would cause a substantial loss,” he said.
“If the government starts purchasing paddy, the farmers will be relieved,” he said.
Responding to queries, he said: “I bought paddy at Rs. 118-119 about 3-4 days ago. We can’t ask for paddy from farmers at prices lower than that. So, I decided to stop purchasing paddy and produce rice from existing stocks and release them to the market. It is better to stop buying paddy if Rs. 120 can’t be paid for a kilo of paddy. So, the government must intervene,” he said.
When asked if his business was running at a loss, he said,” I have enough money to operate my businesses. But I don’t have funds to collect and keep paddy stocks. What I am saying is that I will purchase paddy at Rs. 120 and will give rice at Rs. 220 per kilo. But to do that the government must declare a six-month moratorium on bank loans. If we have money to buy paddy stocks we would do so without seeking bank facilities because working with our own capital would bring us higher returns. But what do we do if we don’t have money?”
Elaborating on his costing issue he said: “When you buy paddy at Rs. 120 a kilo, there are other costs to take into calculation to run the business sustainably. It takes 1.6 kilos of paddy to produce a kilo of rice. This means the paddy cost itself would be Rs. 192. So when you buy at Rs.120, it actually costs Rs. 192 for paddy alone. For each kilo of rice; Rs. 7 for packaging, Rs. 7 for transport, Rs. 3.50 for electricity, Rs. 8.50 for employee salaries and food, Rs. 10-12 for bank interest.
Then there are the EPF and ETF payments and wear and tear costs of machinery. All these need to be calculated and recovered. These costs amount to about Rs 46 per kilo of rice. Effectively, therefore, the total cost of a kilo of rice is Rs. 238. But we sell to retailers at Rs. 215 and they sell at Rs. 220.
“So, this means that we are releasing our stocks to the market at a loss. That’s why we are saying that we can’t buy paddy at Rs. 120,” he said.
Meanwhile, a group of farmers in Polonnaruwa said: “We are compelled to sell our paddy to private sector traders because the government is just sitting around leaving the big rice millers to buy paddy. When the government does not come forward to break the monopoly of the private traders, we have no option but to sell our harvest to them at lower prices. When we sell them paddy at Rs. 100 a kilo, the income from one acre of paddy is only about Rs. 200,000 ,which is not enough to cover our inputs and labour cost. Big rice millers are making the most of this situation.”
The warehouses of PMB still remain closed and farmers have not been informed whether it would enter the market to purchase their paddy.A source familiar with state sector banking told The Island that PMB had outstanding loans of over Rs. 2 billion payable to the state banks.
The U.S. Embassy in Colombo welcomed the U.S. Sports Envoys to Sri Lanka, former National Basketball Association (NBA) and Women’s National Basketball Association (WNBA) players Stephen Howard and Astou Ndiaye, from June 8 through 14.
The Public Diplomacy section of the U.S. Embassy said that it would launch a weeklong basketball program intended to harness the unifying power of sports, made possible through collaboration with Foundation of Goodness and IImpact Hoop Lab.
While in Sri Lanka, Howard and Ndiaye, both retired professional basketball players, will conduct a weeklong program, Hoops for Hope: Bridging Borders through Basketball. The Sports Envoys will lead basketball clinics and exhibition matches and engage in leadership sessions in Colombo and Southern Province for youth aged 14-18 from Northern, Uva, Eastern and Western Provinces, offering skills and leadership training both on and off the court. The U.S. Envoys will also share their expertise with the Sri Lanka Basketball Federation, national coaches, and players, furthering the development of basketball in the country. Beyond the clinics, they will collaborate with Sri Lankan schoolchildren to take part in a community service project in the Colombo area.
“We are so proud to welcome Stephen and Astou as our Sports Envoys to Sri Lanka, to build on the strong people-to-people connections between the United States and Sri Lanka,” said U.S. Ambassador Julie Chung. “The lessons that will be shared by our Sports Envoys – communication, teamwork, resilience, inclusion, and conflict resolution – are essential for leadership development, community building, equality, and peace. The U.S. Sports Envoy program is a testament to our belief that sports can be a powerful tool in promoting peace and unity.”
SJB Colombo District MP Mujibur Rahuman in parliament demanded to know from the government the reasons for CEB suspending the leave of all its employees until further notice from Thursday.
MP Rahuman said that the CEB has got an acting General Manager anew and the latter yesterday morning issued a circular suspending leave of all CEB employees with immediate effect until further notice.
“We demand that Minister Kanchana Wijesekera should explain this to the House. This circular was issued while this debate on the new Electricity Amendment Bill was pending. There are many who oppose this Bill. The Minister must tell parliament the reason for the urge to cancel the leave of CEB employees,” the MP said.However, Speaker Mahinda Yapa Abeywardena prevented Minister Wijesekera responding to the query and said that the matter raised by MP Rahuman was not relevant.
The Chartered Institute of Personnel Management (CIPM) successfully concluded the 8th Annual CIPM Symposium, which took place on 31st May 2024. Themed “Nurturing the Human Element—Redefining HRM in a Rapidly Changing World,” the symposium underscored the pivotal role of human resource management (HRM) in today’s dynamic global landscape. Since its inception in 1959, CIPM has been dedicated to advancing the HR profession through education, professional development, and advocacy, solidifying its position as Sri Lanka’s leading professional body for HRM.
Ken Vijayakumar, the President of the CIPM, graced the occasion as the chief guest. The symposium commenced with the welcome address by the Chairperson, Prof. Arosha Adikaram, followed by the Web Launch of the Symposium Proceedings and Abstract Book by the CIPM President. The event featured distinguished addresses, including a speech by Chief Guest Ken Vijayakumar, President of CIPM, and an address by Guest of Honor Shakthi Ranatunga, Chief Operating Officer of MAS Holdings Pvt. Ltd., Sri Lanka.
The symposium also featured an inspiring keynote address by Prof. Mario Fernando, Professor of Management and Director of the Centre for Cross Cultural Management (CCCM) at the University of Wollongong, Australia.
Vote of Thanks of the inauguration session was delivered by Dr. Dillanjani Weeratunga, Symposium Co-chair.
The symposium served as a comprehensive platform for researchers to present their findings across a wide range of critical topics in HRM. These included Cultural Diversity and Inclusion, Talent Development and Retention, Ethical Leadership and Corporate Social Responsibility, Adapting to Technological Advancements, Mental Health and Well-being at Work, Global Workforce Challenges, Employee Empowerment, and Reskilling and Upskilling.
The plenary session was led by Prof. Wasantha Rajapakse. Certificates were awarded to the best paper presenters during the valedictory session, followed by a vote of thanks delivered by Kamani Perera, Manager of Research and Development.
The annual symposium of CIPM was a truly inclusive event, attracting a diverse audience that spanned undergraduates, graduates, working professionals, research scholars and lecturers. This widespread interest highlights the symposium’s significance in the field of HRM, offering a unique opportunity for everyone to network and learn from scholarly brains.The CIPM International Research Symposium was sponsored by Hambantota International Port, Sri Lanka Institute of Information Technology (SLIIT), E B Creasy & Co. PLC, and Print Xcel Company.
US sports envoys to Lanka to champion youth development
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