It is said that this action has been taken by the mill owners as a mean of lowering the price of paddy.
It is reported that as the government has not announced the controlled price in the government's gazette notification , they have taken measures to not purchase paddy as the harvests of medium scale irrigation come in to the market as a mean of lowering the price.
As a result, the price has dropped to between Rs. 30 to 35.
The price of paddy has come down in a situation where the government has instructed to buy a kilogram of paddy at Rs 50 and wet paddy at Rs 45.
The Aruna newspaper reports that this situation has emerged as a result of not opening the Paddy Marketing Boards in the Northern Province, Kurunegala, Batticaloa and Ampara where harvesting has commenced , purchasing the harvest according to the acreage and inadequate storage facilities.
It is said that the situation is likely to worsen as the harvesting of the large scale irrigation also commences in next few weeks.