Sri Lanka's planned import duty on rice too high

Sri Lanka is expected to re-erect an import barrier soon to keep cheaper rice out of the reach of the island's consumers, but the country's 25 rupee (US$0.22) a kilo duty is too high, consumer affairs minister Bandula Gunewardene said. A kilo of rice spiked over 70 rupees (US$0.61) at the beginning of the year and a popular variety of premium 'Samba' rice went over 85 rupees a kilo at the end of 2009 and the government reduced the import tax to one rupee a kilo in December to bring prices down.

* Sri Lanka not only taxes rice, but also wheat and potatoes making carbohydrates extremely expensive, hurting the basic nutrition of the poor.

* Import duties create markets for local producers and farmers by keeping cheaper alternative products out of the reach of the poorest sections of society, as more well-to-do people have the means to overcome such barriers.



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