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Price monitoring and analysis country brief - Sri Lanka

Year of publication 2011

Author Agriculture and Economic Development Analysis Division

Product type Document

Category Other document

Edition 1

Synopsis (short abstract) Favourable forecast of Yala season paddy crop has led to declined rice prices. Overall food security situation has improved particularly thanks to the agricultural recovery. Agencies describe the situation of hunger as serious with moderately high prevalence of undernourishment. Since the war ended IDPs have returned to their place of origin in the north; repatriation process has been nearly completed and most refugees' camps have been closed. The government is supporting agriculture throu gh input subsidies and by undertaking trade measures to reduce imports and increase self-sufficiency.

Language English

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    Rice prices have been rising in the last months but stabilized in January while wheat flour prices, although remained stable, were very high, mainly due to import dependence. Although food security has improved, poor groups particularly children suffer from high levels of malnutrition. Agencies are concerned over a serious food security situation. Over 1 million people were affected by floods earlier in the year in the east and central parts of the country. Flooding damaged also paddy crop i n the main (Maha) season, but rice output for 2011 was still good. The Government is supporting domestic production through wheat import duties and incentives for farmers such as input subsidies and irrigation development.
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    Prices of wheat and rice in Karachi and Lahore went up between May and September 2011. The high food prices contribute to deteriorating food security conditions. More than 8.9 million people have been affected by the floods in Sindh and Balochistan. Floods have destroyed some 2.1 million acres of crops in Sindh alone and caused death of large numbers of livestock. Agencies report a localized severe food security situation with some 3 million people requiring emergency food assistance. High undernourishment level and a situation of alarming hunger are reported in the country. Government is helped by International agencies to assist people affected by floods. WFP has provided food aid to 1.2 million people and aims at reaching 2.5 million people in the coming weeks.
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