Govt. announces major support package for paddy farmers and mill owners

Wednesday, 28 August 2024 00:32 - - {{hitsCtrl.values.hits}}

Cabinet Spokesman and Minister Bandula Gunawardena

By Charumini de Silva

Ahead of the upcoming Presidential election, the Government announced a series of measures yesterday to support paddy farmers and small and medium scale mill owners.

This support package approved by the Cabinet of Ministers during their meeting on Monday include; allocation of Rs. 500 million for Paddy Marketing Board (PMB) for purchasing and further increasing fertiliser subsidy from Rs. 15,000 per hectare to Rs. 25,000.

“It was approved to allocate Rs. 500 million to the PMB to actively engage in the paddy purchasing program for the Yala season, which will come into effect immediately,” Cabinet Spokesman and Minister BandulaGunawardena said yesterday.

As part of this initiative, he said the Government has set the purchasing prices at Rs. 105 per kilo for Nadu paddy, Rs. 115 per kilo for Samba paddy and Rs. 130 per kilo for Keeri Samba.

Gunawardena also disclosed that the Cabinet of Ministers revised its last week’s decision on the fertiliser subsidy.

“The initial financial subsidy set at Rs. 15,000 per hectare has now been increased to Rs. 25,000 and applicable for up to two hectares amounting to a maximum subsidy f Rs. 50,000,” he said, adding that this substantial increase followed extensive explanation and discussion with Agriculture Minister Mahinda Amaraweera and Treasury officials.

“The paddy harvest of the Yala season of the year 2024 has just commenced and the approval of the Cabinet of Ministers already pledged loans up to a maximum of Rs. 6,000 million to small and medium-scale mill owners under a concessionary interest rate to purchase paddy in Yala season,”Gunawardena said.

He asserted that the objective of the initiative is to increase the competitiveness in paddy purchasing and encourage paddy production during Yala and Maha cultivation seasons.

“The move is expected to provide significant relief to small and medium-scale paddy mill owners, enhancing their capacity to purchase and process paddy, thereby stabilising the market and supporting the livelihoods of those dependent on the agricultural sector and ensure fair prices and secure food suppliers in the country,” he added.

The decision was based on a proposal jointly presented by President Ranil Wickremesinghe in his capacity as the Finance, Economic Stabilisation and National Policy Minister and Agriculture Minister Mahinda Amaraweera.