The government said that it will launch a Rs 10 billion loan facility at a subsidized interest rate for small and medium-scale (SME) paddy millers and cooperative societies to purchase paddy in the 2024/2025 Maha season.
The main objective behind this concessional loan scheme is to ensure a fair price for paddy farmers. The Department of Agriculture is expected to announce a minimum purchase price (MPP) for purchasing the paddy harvest.
According to the Department of Development Finance, only small and medium-scale (SME) paddy millers and cooperative societies with a maximum daily paddy milling capacity of 25 metric tons are eligible for this scheme. Furthermore, all borrowers must have a valid business registration obtained from a relevant government agency.
The program was implemented from January 3rd this year and is valid until May 15th this year after the Cabinet approval on December 31st last year.
In addition, the Ministry of Trade, Commerce and Food Security is also planning to purchase record paddy for the Maha season after the 20th of this month.
According to the USDA, Sri Lanka’s paddy harvest is forecast to increase by a moderate two percent year-on-year (YoY), increasing from an estimated 4.96 MMT in MY 2023/2024 to 2 MMT in the MY 2024/2025 marketing year (October-September).
Eligible institutions can apply for the loan scheme through the following banks:
Ceylon Bank
People’s Bank
Regional Development Bank
State Mortgage and Investment Bank
Hatton National Bank PLC
Seylan Bank PLC
Sampath Bank Ltd
Commercial Bank PLC
DFCC Bank PLC
National Development Bank PLC
Nations Trust Bank
Sanasa Development Bank Ltd
Union Bank PLC
Amana Bank PLC
Cargills Bank PLC
