🇱🇰 Govt 🌾paddy-to-rice tender seen favoring 10 major millers

🇱🇰 Govt 🌾paddy-to-rice tender seen favoring 10 major millers

⭕ The government will open a new tender to mill and pack paddy stocks purchased by the state through Lanka Sathosa.

⭕ Tender conditions are reportedly designed for only 10 large millers, excluding most medium operators.

⭕ Key requirements:
— Milling capacity of 15,000 kg per hour
— 300,000 kg transport per trip (≈15 lorries of 20 tons each)
— Storage capacity of 7,000 MT
— Annual turnover above Rs 1 billion

⭕ For the first time, the Sathosa chair has set the rice recovery rate at 63% — lower than the usual 65–67% yield reported in most regions, according to farmers’ and millers’ unions.

⭕ According to the unions, in past years the paddy-to-rice ratio was part of the tender process, making it more competitive.

⭕ This 2% difference on a 50,000 MT stock equals roughly 1 million kg of rice. At Rs 200 per kg, major millers could gain about Rs 200 million.

⭕ Farmers’ and millers’ unions claim this change benefits a few large firms and reduces the state’s return from public paddy stocks.

⭕ A complaint has been lodged with the 🇱🇰 Bribery Commission over alleged bias and irregular tender design.

⭕ Sathosa states the process aims to accelerate rice distribution through state channels.

⭕ Oversight note: Lanka Sathosa is scheduled to appear before COPE on Oct. 10, 2025.

#SriLanka #RiceTender