Friday Nov 08, 2024
FT
Friday Nov 08, 2024
Saturday, 3 February 2024 01:52 - - {{hitsCtrl.values.hits}}
In a bid to maintain a reasonable price for farmers, a pledge loan scheme under a concessional interest rate for small and medium-scale (SME) paddy millers, paddy storage owners and paddy collectors has been implemented for purchasing paddy in Maha Season 2023/2024.
The move comes following a Cabinet decision taken on Monday and the concessionary loan scheme is implemented from 1 February to 30 April. The total value of the loans to be disbursed by the Banks is Rs. 9 billion.
Accordingly, the target group of this loan scheme includes SME paddy millers who are subject to a maximum daily paddy milling capacity of 25 tons, paddy storage owners and collectors are subject to having an adequate storage capacity or a valid lease agreement with a storage owner with a sufficient storage capacity or SME paddy miller.
Such borrowers should have a valid Business Registration obtained from a relevant Government institution.
They can get loans at the effective interest rate of 15% per annum under the maximum loan amount of Rs. 50 million per SME paddy miller and Rs. 25 million per paddy storage owner and paddy collector. Out of the effective interest rate, an 11% interest rate has to be borne by the respective borrowers and the interest subsidy is 4%. The respective loan should be repaid within 180 days.
It has been planned to provide pledge loans through the Bank of Ceylon, People’s Bank, Regional Development Bank, Commercial Bank of Ceylon PLC, DFCC Bank Ltd, National Development Bank PLC, Hatton National Bank PLC, Sampath Bank Ltd, Sansa Development Bank Ltd and Seylan Bank PLC under this loan scheme.
Further, it has been planned to purchase paddy at a Minimum Purchase Price of Paddy declared by the Department of Agriculture under this program. Minimum Purchase Price of paddy for Maha Season 2023/2024 (Rs. per kg) is as follows.
Variety Standard paddy with moisture content of 14% (Rs.) Wet paddy with moisture content more than 14% (Rs.)
Nadu 105 90
Samba 120 100
Keeri Samba 130 120
