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Rice Shortage Worsens as Raw Rice is Diverted for Beer Production, Association Warns

The Small and Medium Scale Rice Mill Owners’ Association claims that the growing rice shortage in the market is largely due to the increased use of raw rice for beer production.

According to the association, this diversion has significantly reduced the availability of rice for consumers, driving up prices. U.K. Semasinghe, the association’s chairman, stated that the raw rice used for brewing comes from ‘Nadu’ paddy. “Raw rice is essential for beer production, but it comes from ‘Nadu’ paddy. When more of this paddy is allocated to beer production, the supply for regular Nadu rice decreases,” he explained.

Farmers’ organizations have echoed these concerns and are urging the government to take action to stabilize rice prices. Meanwhile, many shopkeepers report challenges in sourcing rice at the government-controlled price, further exacerbating market strain.

In recent weeks, rice prices have surged across local markets, leaving consumers facing a noticeable shortage of ‘Nadu’ rice. In response, President Anura Kumara Dissanayake convened a meeting with large-scale rice distributors. The discussions led to an agreement to uphold controlled rice prices in the retail market, aiming to alleviate pressure on consumers amid the ongoing shortage.

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