Environment Minister Mahinda Amaraweera has said the rice price control and rice distribution program had failed due to the gazette notification imposing price controls with regard to paddy and rice.
Speaking at a function held at the Geological Survey and Mines Bureau yesterday (30), the Minister said that although a gazette notification should ensure fairness to the farmer and the consumer, it was the middlemen in the supply chain that benefited from this gazette instead.
He says that it is not appropriate to set a gazetted price control for a crop that has been cultivated for 06 months and that is why such an improper issuing of gazettes led to this situation.
5 state owned mills
Mr. Amaraweera also said that it has been decided to commence five rice mills with the intervention of the government to suppress the rice mafia and regulate the distribution of rice.
These state owned rice mills will be set up in 05 locations across the country and will purchase paddy from farmers while issuing rice to consumers at concessionary prices.