Fake Basmati floods market amid rising rice imports

Ada Derana has uncovered a concerning case of fraud in Sri Lanka’s rice import trade, where certain individuals exploit government-granted import permits to deceive consumers.  

An investigation by Ada Derana revealed that a type of rice, closely resembling Basmati rice, is being imported at low cost and sold in the market under the guise of genuine Basmati rice, profiting at the expense of consumers.  

Sri Lanka permits the import of Basmati rice year-round, subject to a tax exceeding Rs. 300 per kilogram. However, traders are importing a similar variety of rice, which can be purchased at Rs. 220–250 per kilogram, paying a significantly reduced tax of Rs. 65 per kilogram. These imports are then marketed at higher prices as Basmati rice, misleading buyers.  

When contacted for comments, Additional Director General of Sri Lanka Customs and Customs Media Spokesperson Seevali Arukgoda confirmed that the fraud can only be detected through laboratory testing of imported rice samples. He emphasized that Sri Lanka Customs lacks legal authority to address such cases, as the responsibility lies with the Consumer Affairs Authority.