The JVP yesterday said that the import of a large stock of rice to control rising prices would benefit politically influential racketeers if imports come in just ahead of the next Yala harvest.

JVP General Secretary Tilvin Silva said that the availability of large stocks would automatically force debt-ridden farmers to sell their produce at low prices. This would directly benefit what he called the politically powerful rice cartel.

He emphasised that the government should have imported stocks immediately after major traders claimed that there was a significant drop in the supply.

Had the Rajapaksa administration intervened promptly the situation would have been different, he said, claiming that the much delayed intervention would now help the racketeers. That would be at the expense of the farmer, he said, asserting that three decades of mismanagement, waste, corruption and irregularities had crippled the government. "The government has no longer a viable system in place to procure, store and distribute essential supplies," he said, squarely blaming the Rajapaksa administration for turning a Nelsonian eye to brazen acts of price manipulation by a section of the government.

He urged the government to take advantage of emergency regulations to smash racketeers. The official asserted that the people couldn't cope with the rising cost of living and the government's indifference had made matters worse.

According to him a kilo of paddy bought at Rs 16.50 could be easily sold with a reasonable profit. A kilo of rice could be sold for Rs 40 but the government had allowed the price of a kilo of rice to go up to Rs 80. This was a crime and should not be allowed to continue. He warned of dire consequences unless action was taken to control cost of living.

He dismissed the perception that war costs had caused uncontrollable inflation. That was not true, he said, claiming that waste, corruption, malpractices and essentially ill-fated economic policies had caused the current crisis.