The Government decided on January 27 to further reduce the existing tax on imported rice with immediate effect. The levy was already reduced earlier in January to LKR 15 (USD 0.1) per kg (FPMA Food Policies) and it has now been reduced to LKR 5 (USD 0.03). The concession will apply to the imports of brown raw rice, Samba and Nadu, but not Basmati rice. The measure aims to ease rice prices which have reached record highs in January, underpinned by the reduced 2016 secondary yala output, harvested in September, and the unfavourable prospects for the main 2017 maha crop, soon to be harvested.