Commerce Minister Bandula Gunawardene last night vowed to implement the price control of rice as consumers alleged that traders had simply ignored the government directive. Consumers claimed rice wasn’t available at the prices set by the government on Wednesday night.

Under the new regulations, the price of rice would be: Samba retail- Rs.70 wholesale – Rs.63, Rathu Kekulu retail- Rs.65, wholesale- Rs. 58, Sudu Kekulu retail- Rs.55 wholesale – Rs.48, Nadu retail – Rs. 65 wholesale Rs. 58.

The minister said raids would be conducted beginning next week to enforce the new price structure. Interviewed by television stations, traders said they wouldn’t sell rice at the prices stipulated by the government.

The Government’s decision to control the price of rice came in for severe criticism yesterday from the wholesale trade.

President of the Colombo Pettah Old Moor Street Wholesale Traders Association K. Palaniandy said the Government’s decision to impose price control on rice was arbitrary. He urged the Government to at least grant the traders a grace period of nine days to consult the millers so that the chaotic situation that had been created by the sudden imposition a price control could be sorted out.

"As a result of the ad-hoc decision by the Government the Laksathosa outlets which had purchased stocks at much higher prices were compelled to toe the Government’s line. People flocked to those outlets yesterday demanding rice at the controlled prices. Laksathosa is sure to run out of stocks in two days with mounting losses to the Government," he said.

"We are shocked at the way the Government went about imposing a price control without a dialogue with any of the Millers or Traders," Palaniandy said.

"If the government was sincere in helping the poor masses, we would certainly cooperate but the Government should have consulted us first or the millers at least, then all could have understood the present situation and reached some consensus," said.

He said the traders would have no problems with regard to imported rice, but the local rice had been purchased from the millers at high costs. It was fine for the government in the interest of the poor masses to bear the losses but they, the traders, were businessmen and had to pay their employees, overheads, taxes and Bank loan interest. He asked who would bear the responsibility for their losses.

"We may be compelled to go out of business, Palaniandy said.

"The Government does not have money to import rice and at present private traders do not have any stocks in hand. This would not create a problem even if rice is imported, the problem is with the local rice," he said.

Palaniandy said if the government believed that it could carry out the task of retailing rice at cheaper prices, they were willing to let it do so and put up shutters for want of an alternative.