6. Mr. TALBOTasked the Secretary for India whether he is now in the position to make a statement respecting the excessive price fixed by the Government of. India for rice exported to Ceylon and certain other British Dominions?
§ Mr. FISHERAs the reply is somewhat long I propose, with the permission of my hon. Friend, to circulate it in the OFFICIAL REPORT:—
§ The following is the reply referred to:
§ The object which the Government of India had in view in assuming control over the Burma rice trade was to enable consumers in India and Burma to obtain a staple food at a reasonable price and to supplement the seriously depleted stocks in India. As this necessarily involves a limitation of the profits of producers, the Government of India are under an obligation to obtain a fair market price for the exportable surplus and to restore the profits to the producers. But although the world shortage of rice, caused by the failure of the Siam crop and a short Burma crop, would have enabled exceedingly high prices to have been obtained, the moderate minimum export price of about Rs. 15 per cwt. f.o.b. Rangoon has been fixed against a cost price of Rs. 9 at which India is supplied. This ex- 1245 port price is very considerably less than the world price, which, but for the control, British Possessions would have been compelled to pay. Further—and perhaps more important—practically the whole of the exportable surplus has been reserved for British Possessions. This surplus, unfortunately, is insufficient to meet all demands, but is being distributed as fairly as possible. Had this control not been established it is reasonably certain that the Colonies would not only have been forced to pay a much higher price, but would have been unable to obtain the quantities allotted to them under the scheme.
§ Last week the Viceroy received a deputation from Ceylon which represented the serious condition of affairs in the island caused by the high price of rice. Lord Chelmsford, while sympathising with the deputation, emphatically repudiated the suggestion that the Government of India were in any way responsible for the rise in the price of rice in the world's markets, and pointed out, as explained above, that the control which had been established enabled Ceylon to obtain her requirements at much below world prices In the matter of allotments also Ceylon had been treated very favourably, as 360,000 tons had been reserved for the Colony. To the complaints of the deputation, that no previous warning had been given, the Viceroy replied that, so long ago as November last, the Ceylon Food Controller knew that the control over exports might be removed, and the Government of Ceylon therefore should have been prepared for a rise in the price of Burma rice to the level of world rices. As regards the claim of the deputation, that Ceylon should be treated as part of India, Lord Chelmsford, while recognising the close historical and geographical connection between the two countries, pointed out that Ceylon was politically and financially independent of India, and could not expect to obtain what would in effect amount to a large subsidy from India by receiving its supplies of rice at less than the price which had been accepted by other Colonies without question. But moved by the appeal on behalf of the general population, and especially the Indian population, and having regard to the fact that Ceylon affords employment for the surplus population of Southern India, which might be forced to return to India in the event of a food shortage in Ceylon, he agreed to 1246 supply 180,000 tons of rice at a flat rate of Rs. 12 per cwt. I feel sure that my hon. Friend will agree that the concession which the Viceroy has found it possible to make—involving as it does a surrender of over £1,250,000 is a substantial one, and I trust that it will serve to relieve the situation in Ceylon.
§ Mr. FISHERIt depends upon the point of view from which the reply is regarded.
§ Mr. FISHERYes.