Sri Lanka tightens corn imports

March 19, 2009 (LBO) - Sri Lanka has tightened rules on corn imports to arrest falling domestic farm gate prices with a record area under cultivation this year, a government minister said.
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For the 2008/2009 cultivation season 65,850 hectares of corn are expected to be put under the crop and 60,582 has already been planted.


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The government is expecting a harvest of at least 112,000 metric tonnes in this season.

With effect from January 30, 2009 Sri Lanka had imposed a 35 percent cess tax on a kilogram of corn (maize) to discourage imports as international corm prices fell, information minister Anura Yapa told reporters Thursday.

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To maintain a guaranteed price of 28 rupees, the cabinet of ministers had approved further measures devised by the office of the president.

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Corn importers will now have to get a certificate from the department of agriculture on the volume of imports needed, taking into consideration local production.

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An importer will have to get a certificate that a volume equal to or more than the volume sought to be imported had been purchased from the domestic market.

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Corn has been brought under Sri Lanka's import and export control act with effect fr

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