Rice imports face challenges due to price controls

The Essential Food Importers Association has warned that rice imports may need to be restricted despite the government allowing imports until the 20th of this month.

The association has called on the government to remove either the maximum retail price or the existing tax on imported rice to address the issue.

While the government permitted rice imports to tackle the current shortage, it also imposed maximum retail prices on both local and imported rice. As a result, local rice and some privately imported rice are now available in the market.

However, traders report difficulties in selling imported rice at the regulated prices. Nihal Seneviratne, the association's media spokesperson, stated that although 50,000 metric tons of rice were expected to be imported, only about 25% might be brought in unless the price controls or taxes are revised.