The government will release funds to rice mill owners this week under a concessionary loan scheme aimed at facilitating the purchase of paddy harvested during the ongoing Yala cultivation season, Deputy Minister of Agriculture Namal Karunaratne said.
The funds will be disbursed through District Secretaries to ensure the uninterrupted purchase of paddy from farmers while helping maintain market stability during the harvest period.
Under the programme, rice mill owners will be eligible to obtain interest-free loans of up to Rs. 25 million to purchase Yala-season paddy.
Deputy Minister Karunaratne said the government has already purchased more than 45,000 metric tons of paddy as part of efforts to provide farmers with a guaranteed market and protect farm-gate prices.
He added that Parliament last Friday approved a Rs. 7.5 billion supplementary estimate to support the continuation of the government’s paddy purchasing programme and provide further assistance to the farming community.
The government expects the financing scheme to strengthen the paddy purchasing process during the current harvest and help prevent disruptions that could adversely affect farmers and market prices.
