Government Revamps Paddy Purchase System

COLOMBO (News 1st); In a significant shift, the Sri Lankan government has decided to bypass the Paddy Marketing Board (PMB) for paddy purchases during the upcoming Maha season. 

Instead, the responsibility will fall on small and medium-scale rice mill owners and rice stock collectors, overseen by regional secretaries.

This decision, announced by the Ministry of Finance, aims to streamline the process and ensure wider participation in paddy buying.

Moreover, the government has decided to implement a loan scheme through public and private banks under a concessional interest rate for the purchase of paddy. 

Accordingly, the funds will be allocated
based on the average Maha Season Paddy production of each district during the last 5 years.

Loans of Rs. 9 billion are expected to be issued under the proposed loan scheme. 

A maximum loan of Rs 50 million will be given to small and medium scale rice mill owners and a maximum of Rs 25 million to rice warehouse owners and rice stockists.

The Department of Government Information said that the loan repayment period is 180 days.

The annual interest rate is 15% of which 4% will be borne by the Treasury, it added.

Accordingly, the Cabinet of Ministers approved the proposal presented by the President in his capacity as the Minister of Finance, Economic Stabilization and National Policies to implement the proposed paddy purchase program.