Rice shortage, price surge fueled by increased beer production?

The Small and Medium Scale Rice Mill Owners’ Association stresses that the growing rice shortage in the market is caused by the increased use of raw rice for beer production. 

According to the association, diverting more rice for brewing has impacted the availability of rice for consumers, leading to rising prices.

Chairman of the association U.K. Semasinghe explained that the raw rice used in beer production is sourced from ‘Nadu’ paddy.

“Raw rice is essential for beer production, but it comes from ‘Nadu’ paddy. When a greater portion of this paddy is allocated to the production of beer, the supply of paddy for regular Nadu rice production diminishes,” he noted.

Against this backdrop, farmers’ organizations have echoed similar concerns, urging the government to intervene and stabilize rice prices. 

Many shopkeepers report difficulty in obtaining rice at the government-controlled price, further straining the market. 

Over the past few weeks, rice prices have surged in local markets, and consumers are facing a noticeable shortage of ‘Nadu’ rice.

In response, President Anura Kumara Dissanayake recently convened a meeting with large-scale rice distributors. 

Following the discussions, an agreement was reached to maintain controlled rice prices in the retail market, in order to alleviate pressure on consumers amid the shortage.