10 January 2025 05:18 am Views - 484
The government announced that it rolled out a Rs.10 billion loan facility under a subsidised interest rate for Small and Medium Scale (SME) Paddy Millers and Cooperative Societies to purchase paddy in the Maha Season 2024/2025.
The main objective behind this concessionary loan scheme is to ensure a reasonable price for paddy farmers. The Department of Agriculture is expected to declare a Minimum Purchase Price (MPP) to purchase the paddy harvest.
According to the Department of Development Finance, only Small and Medium Scale (SME) paddy millers and Cooperative Societies with a maximum 25MT daily paddy milling capacity will be qualified for this scheme. Further, all borrowers are required to have a valid Business Registration obtained from a relevant government institution.
The programme came into effect from 3rd of January this year and will be valid until 15th of May this year following the Cabinet approval on 31st of December last year.
In addition, The Ministry of Trade, Commerce, and Food Security is also planning to purchase record levels of paddy for the Maha season after the 20th of this month.
According to USDA , Sri Lanka’s paddy harvest is projected to increase marginally by two percent Year-on-Year (YoY) to 2 MMT in the 2024/2025 market year (October-September) from the estimated 4.96 MMT in MY 2023/2024. (NF)