Trade Minister in Myanmar

To negotiate rice, grain purchase:

A Government delegation led by Trade Marketing Development, Co-operatives and Consumer Services Minister Bandula Gunawardena reached Myanmar yesterday morning on a directive of President Mahinda Rajapaksa to negotiate purchase of rice and other food grains from that country, official sources said.

The decision to take steps to prevent a price hike or a shortage of rice was made at a special meeting of Ministers presided over by President Rajapaksa to review the present position of prices and stocks of rice and other food grains in the country. The UN Food and Agriculture Organization had warned of a price increase of world food grains.

This anticipated increase is expected in the coming months and the committee also considered the FAO report at its meeting. Some rice growing areas had also suffered drought that could affect the Maha season rice harvest, official sources said.

Minister Bandula Gunawardena before his departure said a stockpile of about 50,000 tons of rice would be held in the government food stores so that any adverse trends such as ad hoc increase of prices of rice by traders could be averted by releasing the buffer stocks to the market if it becomes necessary.

The official delegation held talks with the Myanmar rice trade representatives yesterday and would continue talks today to negotiate the purchases of rice and other food grains, Sri Lankan Ambassador in Myanmar Newton Gunaratne said.

Myanmar had exported rice to Sri Lanka in the past and was in a position to supply our requirements as it was an agricultural country producing rice and other food grains in sufficient quantities and the good relations between the two countries was also a significant factor, he said. The delegation led by Minister Bandula Gunawardena included the Ministry Secretary Lalith de Silva, Deputy Secretary to the Treasury Dr. R.H.S. Samaratunga and Lak Sathosa Chairman Nalin Fernando.