The rise in rice prices: A conundrum of sorts

by Dr. Vickramabahu Karunaratne

The rise in rice prices is not favourable for the agricultural sector. Those who claim that it is so, point to the rise in value of agricultural products. In fact, strong claims are being made of rising prices not only of rice but also, of rubber, coconut and tea. It is true that small producers of all these and other commercial agricultural products are to some extent enjoying the boom. However, the actual situation does not justify the claims of the Government.

Parallel to the rise in price of the end product, the prices of all intakes have also risen. Fertiliser, weeding and transport costs are also running high. I participated at the Avurudu festival at Mangalagama, Yatinuwara. It was well attended. I felt that all those present were well-dressed and reasonably happy. Piyadasa, the chairman of the village cooperative store, explained to me that the wages of electricians, masons, carpenters etc, had all risen beyond Rs.700 per day, and that there was work. In addition, several youth had joined the security forces and their families were getting a substantial income. This village consists of traditional technical workers, with the tradition going back to ancient times. They however do not own much land.

Desperate looks

I can’t take what Piyadasa says that seriously, as he was and still is, a loyal SLFP man! But I did not see the desperate looks in people that I witness in the suburbs of Colombo. The war industry is a complete menace to the cosmopolitan suburbs, but it is an income generator for the Sinhala village. Already around half a million are employed directly or indirectly in war-related activities. In spite of deaths and tragedies, this is a very good source of income. If one believes in all the rubbish dished out by chauvinists of the Government and heals oneself of all bereavements with the thought that brave sacrifices were made for the defence of the country, then one can bear up the loss!

Though technical workers can earn anything above Rs.700 per day, it is not the same for the agricultural worker. In rice production, many activities are now taken over by machines, displacing workers. Hence the demand, even during the season has gone down tremendously. In the wet zone, particularly at higher elevations, there is a demand for agricultural workers.

Labour

Tea and rubber small holders are looking for labour and the claim is that there is a shortage of those who are familiar with the work involved. Obviously, the youth are drifting away from such activities and they are looking for office or factory jobs with fixed incomes. Industrial growth, whether related to agriculture or otherwise, is so damn slow that there is a large section of unemployed educated youth eternally looking for jobs. Already two insurrections have been carried out by these Sinhala youth, with the ideal of changing society that promises a lot but gives nothing. So, the village in general is pressed on two sides. On the one hand, the shortage of agricultural workers who could be employed by small holders; and on the other, angry, educated youth demanding jobs to satisfy their expectations created by the system.

Surplus of labour

There is a claim that there is a surplus of labour in the plantation sector. But in reality there is a shortage of workers who are inclined to engage in agricultural work. Most of the plantation youth drift into the suburbs of Colombo and Kandy looking for jobs in services and industries.

Even those who have retired from plantation work do not want to continue their trade in the small holdings sector. What do they get? A maximum of Rs.7000 per month with food and lodging. But if one gets a job in the service or maintenance sector one can easily save Rs.400 each day, and with 20 working days it will come to Rs.8000. This means they only mark time while working in the petty bourgeoisie agricultural sector, until they find a job in the city.

Many rural workers, especially women, take up foreign employment in the Middle East or in the West. With one person, with such an employment, there is assumed satisfaction in the family and except for a fixed income job, none of the family members will want to work for the private sector. It is true that many families face disaster when a member is employed in foreign lands, but those who survive move out of the rural job market, thus reducing the availability of agricultural labour. All this means that agriculture is facing problems in spite of the rise in price for their goods. The village administration is weak and collapsing. This means that the petty farmer finds it difficult to protect his produce from illicit plucking and local thieves. This is not a matter that can be solved by the police or by a court of law in the city.

2 Comments »

  1. Kalaiyagam said,

    April 21, 2008 @ 11:49 am

    The food riots, which broken out in other countries in the world to protest against rising price of rice. It may occur soon in Sri Lanka too.

    எதிர்வரும் காலங்களில் உலகில் முப்பத்திமூன்று நாடுகளில் அத்தியாவசிய உணவுப்பொருட்களின் விலையேற்றத்தை எதிர்த்து, போது மக்கள் கலவரங்களில் ஈடுபடக்கூடிய சாத்தியம் உள்ளதாக தெரிவிக்கப்பட்டுள்ளது. ஏற்கனவே எகிப்து, ஹைத்தி, கமரூன் ஆகிய நாடுகளில் மக்கள் வீதிக்கு வந்து கலவரங்களில் ஈடுபட்டுள்ளனர்.
    http://kalaiy.blogspot.com/2008/04/blog-post_12.html

  2. Fernando.J said,

    April 22, 2008 @ 11:38 am

    The racist JVP is the reason for the present economioc chaos. They should be dealt with severely with the present government.

    JVP promoted war. They were terrorists. They do not know of any negotiated solution. They only know solution through weapons. And that is the reason for the present prices rising.

    When leftists come to power we always faced similar problems. LSSP made people to lick sugar from their hands and drink tea. JVP has made rice shortage through high prices.

    For this May Day, people who do not have food to eat should flock to JVP offices and demonstrate against these criminals who are like a mafia in Sri Lanka.

    JVP are hell bent to bring more suffering to Sri Lankans. Somawansa Amerasinghe even threatened the new British High Commissioner Dr.Hayes with demonstrations against any political solution to the ethnic conflict, because he wants more suffering through war.

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