Friday Jan 10, 2025
Friday Jan 10, 2025
Friday, 10 January 2025 00:24 - - {{hitsCtrl.values.hits}}
In a bid to stabilise paddy prices and support farmers, the Government introduced a concessionary pledge loan scheme for Small and Medium Scale (SME) paddy millers and cooperative societies during the Maha cultivation season 2024/25.
The initiative, approved by the Cabinet of Ministers on 30 December 2024, aims to facilitate paddy purchases at reasonable prices. The loan scheme targets SME paddy millers and cooperative societies with a maximum daily milling capacity of 25 tons and eligible borrowers must hold valid business registration issued by relevant Government institutions.
Under the scheme, participants can access loans up to Rs. 50 million at an interest rate of 7% per annum.
The loans repayable within 180 days and must be used to purchase paddy at the Minimum Purchase Price (MPP) set by the Department of Agriculture.
The program, which runs from 3 January to 15 May 2025, will be rolled out through a network of financial institutions including: Bank of Ceylon, Regional Development Bank, State Mortgage and Investment Bank, Hatton National Bank PLC, Seylan Bank PLC, Sampath Bank PLC, Commercial Bank of Ceylon PLC, DFCC Bank PLC, National Development Bank PLC, Nations Trust Bank, Sanasa Development Bank, Union Bank PLC, Amana Bank PLC, and Cargills Bank PLC.
The total loan value allocated under the program is Rs. 10 billion, enabling millers and cooperatives to purchase paddy directly from farmers. By ensuring a guaranteed price for the harvest, the scheme aims to support agricultural livelihoods and promote stability within the sector.
