Sri Lanka's Cabinet has approved plans to process 30,000 tons of paddy stock held by the Paddy Marketing Board into packaged rice for market distribution, aimed at supporting government procurement efforts and stabilizing rice supplies.
The Government has endorsed a proposal to transform substantial paddy reserves into processed rice, with the aim of reinforcing the State's paddy purchasing initiatives and maintaining consistent market availability. The decision emerged from recommendations discussed at the Food Policy and Security Committee's 34th meeting in late July, and was subsequently formalized through a joint Cabinet submission by the Agriculture and Trade ministries.
Under the approved framework, the Co-operative Wholesale Establishment will solicit bids from licensed rice millers affiliated with the Paddy Marketing Board to undertake the conversion work. Once processed, the rice will be packaged in multiple sizes ranging from 5 kilograms to 50 kilograms, facilitating distribution through various retail channels. A dedicated pricing committee—drawing membership from the PMB, CWE, Lanka Sathosa, and agricultural research institutions—will establish the appropriate conversion rates and final pricing for consumers.
The processed rice will enter the market through multiple outlets, including Lanka Sathosa stores, cooperative networks, and private retailers. According to Cabinet Spokesman Dr. Nalinda Jayatissa, the scheme offers dual benefits: it will free up storage space within the PMB system for newly procured paddy while simultaneously introducing existing stockpiles into circulation. This approach is intended to address supply concerns while supporting the Government's broader paddy procurement framework.
