The National Federation of Sri Lankan Rice Producers alleges a massive fraud exceeding 200 million rupees in the government’s current Yala season paddy to rice conversion process, involving nearly 50,000 metric tons of paddy.
Muditha Perera, convenor of the Federation, revealed this at a press conference held in Polonnaruwa.
Tender Conditions Exclude Small Mill Owners
Mr. Perera pointed out that Sathosa (National Co-operative Wholesale Establishment) has called for tenders to convert government-owned paddy stocks into rice. However, the tender conditions are designed to grant full ownership solely to large-scale mill owners.
He stated that this condition has deprived small and medium-scale rice mill owners of the opportunity to participate in the government’s paddy-to-rice conversion process.
Suspicion Behind Reduced Rice Yield
Furthermore, Mr. Perera leveled another serious accusation, claiming a plan to commit fraud, causing a significant loss to the Treasury.
He noted that while 100 kg of government-owned Nadu paddy normally yields 65 kg of rice, the Sathosa chairman has deliberately reduced this figure to 63 kg for this season, without a proper procurement process.
“This process will cause an enormous loss to the Treasury. It could turn into a massive fraud exceeding 200 million rupees,” Mr. Perera further stated.
Five-Day Paddy Stock Also to Large-Scale Mill Owners!
Representatives of the National Federation of Sri Lankan Rice Producers highlighted that the government currently holds only a five-day supply of paddy for the entire consumption of Sri Lanka.
They claim that entrusting such a critical stock to a large-scale rice mill owner is an extremely foolish act.
Mr. Perera emphasized that if the government continues to offer the opportunity to convert paddy stocks into rice only to large-scale mill owners, small and medium-scale rice producers will be compelled to make a strong decision regarding their future rice supply to Sathosa.
