Reference Date: 17-January-2013
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FOOD SECURITY SNAPSHOT
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Heavy rains cause some localized flooding early in the 2012/13 cropping season
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Near-record cereal harvest estimated in 2012
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Prices of rice and wheat continue to gain strength
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Overall food security situation has improved but localised food insecurity persist
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Heavy rains cause some localized flooding early in the 2012/13 cropping season
Harvesting of the 2012/13 main season (Maha) paddy began in early January and will continue until mid-April. The season was characterised by heavy rains in early November-December which caused localised flooding particularly in North Western, Northern, Eastern and Uva (located in the south) provinces of the country. The overall prospects for the season are good, although floods have caused damage in certain areas.
Near-record cereal harvest estimated in 2012
The 2012 aggregate cereal production is estimated at 4.46 million tonnes, marking an increase of some 10 percent relative to the last year’s above-average outcome. In aggregate, the 2012 paddy production is estimated at 4.2 million tonnes, some 9 percent up on the flood affected 2011 but slightly below the record crop in 2010. The increase mainly reflects a record main (Maha) crop, following an expansion in planted area and exceptional high yields, which more than compensated the drought-reduced 2012 second (Yala) season harvest. According to the Socio Economics and Planning Centre (SEPC) of Department of Agriculture, the drought conditions between June and September reduced the 2012 Yala paddy production to 1.2 million tonnes, some 35 percent below previous year’s record harvest of the same season. The 2012 maize crop, is officially estimated to reach a new record level of 223 000 tonnes, pointing to an increase of 21 percent over the 2011 another record harvest.
In response to the bumper production in 2012, the cereal import requirement in the 2013 marketing year (January/December) is forecast at 1.2 million tonnes, slightly lower than last year’s level. As a result of bumper paddy harvest in recent years, the country is near self-sufficient in rice. Since wheat is not produced, the country imports all of its consumption requirements, forecast for 2013 at normal level of about 1 million tonnes.
Prices of rice and wheat continue to gain strength
The price of rice has been on steady increase since June 2012, following the estimated drought-reduced harvest of the second season (Yala) paddy crop and following paddy millers’ decision to impose higher rice prices, due to high grain costs. In the capital city market the retail price of rice was 4 percent higher in December 2012 compared to the level a year ago. Similarly, the price of wheat flour, which is normally regulated and has been relatively stable since May 2012, increased considerably in November reaching record levels. This increase mainly reflects higher prices imposed by the country’s main milling companies, following higher cost of imports, the depreciation of the Sri Lanka Rupee (LKR) and increase in transport costs. In December 2012, it averaged LKR 98 (about USD 0.78) per kg, some 17 percent higher than a year earlier.
Overall food security situation has improved but localised food insecurity persists
The food security situation has improved after the end of the 25-year old war between the Liberation Tigers of Tamil Eelam (LTTE) and the government forces in May 2009. Most of the IDP camps are now closed but still more than 115 000 people are estimated to be displaced as of September 2012, based on Government statistics compiled by UNHCR, living mostly with host families. Recent floods, affected over 400 000 people and is further exacerbating the situation of already vulnerable population particularly in Northern and Eastern regions of the country.