Sri Lanka to Offer Loans to Businesses for Paddy Purchases

Sri Lankan businesses will receive loans to purchase paddy from farmers, according to Trade Minister Vasantha Senanayake. The minister met with small and medium-sized rice mill owners to discuss the plan, which aims to ensure a stable price for paddy and fair compensation for farmers.

“

We will discuss a plan to provide loans to small and medium-sized businesses through the District Secretaries to purchase paddy.

Under the initiative, businesses must purchase paddy at a minimum price of 120 Sri Lankan rupees per kilogram. The maximum amount of paddy a business can buy from a single farmer is capped at 4,000 kilograms per hectare. Businesses are also required to maintain accurate records of the paddy purchased and the farmers from whom it was bought. These records will be subject to regular inspection.

“

Paddy must be purchased from farmers at a minimum price of 120 rupees per kilogram, and the maximum amount of paddy that can be purchased from one farmer should be 4,000 kilograms per hectare.

The government's goal is to secure the participation of small and medium-sized businesses to guarantee a fair price for farmers. This move is intended to support the agricultural sector and ensure food security within the country.

“

Maintaining accurate records of the purchased paddy and the relevant farmers is mandatory, and these reports will be subject to regular inspection.