Dr Sarath Obeysekera

The recent protests by rice farmers across Sri Lanka once again highlight the deep crisis facing the agricultural sector. Thousands of paddy farmers are voicing their anger over the government-announced purchase price of paddy, claiming that it does not even cover the cost of production.

The cost of cultivation has risen sharply over the past few years. Fertiliser prices have increased substantially, while farmers also have to bear the costs of seed paddy, labour, machinery, irrigation, transportation, and interest on borrowings. Many small-scale farmers have mortgaged their jewellery or borrowed money from informal lenders just to cultivate their fields. For them, a low paddy price is not merely an economic issue; it is a question of survival.

At the same time, the country witnesses the phenomenal rise of a handful of large rice millers. There are reports of these business magnates importing luxury vehicles and even rumours of plans to acquire helicopters. 

Whether such reports are accurate or not, they have fuelled public perception that enormous profits are being made by purchasing paddy from farmers at low prices and later selling rice at significantly higher prices to consumers.

This disparity raises an important question: who really benefits from the nation’s rice economy? The farmers who toil under the scorching sun and depend on uncertain weather conditions, or the intermediaries and mill owners who dominate the market?

The government has both a moral and economic responsibility to protect paddy farmers. One possible approach would be to conduct thorough audits of the tax returns and financial declarations of major rice millers to ensure full compliance with tax laws. Sri Lanka collects substantial revenues through import duties and taxes paid by these large businesses. A portion of such revenue could be earmarked to establish a sustainable paddy purchasing mechanism and support scheme for farmers.

The state can intervene through agencies to purchase paddy at a reasonable guaranteed price, maintain buffer stocks, and prevent market manipulation by a few dominant players. Such an intervention would not be a handout but an investment in food security and rural livelihoods.

Rice farmers are the backbone of Sri Lanka’s food supply. They ensure that millions of families have their daily meal on the table. They are, in every sense, the breadwinners—or rather the rice winners”—of our nation. If the country fails to protect them today, it risks undermining both its agricultural heritage and its future food security.

A nation that values its farmers is a nation that safeguards its own survival. The cries of the protesting paddy farmers should not be ignored. They deserve a fair price, dignity for their labour, and policies that ensure prosperity rather than poverty.

Dr Sarath Obeysekera