SME millers to get concessional loans for paddy purchasing

The government has implemented a pledge loan scheme under a concessional interest rate for small and medium scale (SME) paddy millers to purchase paddy for the 2023 Yala season.
The scheme, which was announced by the Ministry of Finance, Public Administration and National Policy, is aimed at maintaining a reasonable price for farmers and strengthening the SME paddy millers.

Under the scheme, SME paddy millers with a valid business registration and a maximum daily milling capacity of 25MT of paddy can obtain loans up to Rs. 50 million at an effective interest rate of 16 percent per annum. Of this, 12 percent will be borne by the millers and the remaining 4 percent will be subsidised by 
the government.

The loans must be repaid within 180 days. The total value of the loans to be disbursed by the People’s Bank and Bank of Ceylon is Rs. 4 billion.
The scheme is being implemented from September 1 to November 30, 2023.
The government said the scheme would help to ensure a steady supply of paddy to the market and provide a fair price to farmers. It would also help to strengthen SME paddy millers and make them more competitive.