Sri Lanka fixes maximum prices for rice amid shortages

Colombo  - The Sri Lankan government on Thursday for the first time fixed maximum prices on rice in the wake of shortages caused by floods last month, officials said.

The sale of rice above these prices could result in a minimum fine of 5,000 rupees (46 dollars), the government said.

The price of one of the most commonly consumed varieties of rice, samba, has been fixed at 70 rupees per kilogram when the average market prices has been 85 rupees.

"The current price increase seen in the local market is artificial and is putting both the farmer as well as the consumer in trouble," Consumer Affairs Minister Bandula Gunawardena said.

Sri Lanka's rice production was severely affected by heavy rains in the last two weeks of March when more than 4,000 hectares of paddy was damaged during the harvesting season.

The government hopes to import more than 250,000 metric tons of rice from Myanmar and Pakistan. It has also appealed to India to relax a ban on rice exports and enable Sri Lanka to purchase rice.

Rice is the main food for Sri Lanka's 20 million people. The country's rice production is about 3 million tons per year. (dpa)