Following discussions with President Anura Kumara Dissanayake, the government has announced plans to introduce a loan mechanism enabling small and medium-scale paddy mill owners to purchase grain from farmers at guaranteed minimum prices.

The government is developing a targeted lending programme aimed at assisting small and medium-scale paddy mill operators, according to statements made after a meeting at the Presidential Secretariat on 11th. The initiative emerged from discussions between the President and mill owners who highlighted their challenges in securing paddy supplies and accessing credit under existing loan schemes.

Under the proposed framework, participating millers would be required to purchase paddy from farmers at a minimum price of Rs. 120 per kilogramme, with individual farmer transactions capped at 4,000 kilogrammes per hectare. Minister of Trade, Commerce, Food Security and Cooperative Development Wasantha Samarasinghe indicated that District and Divisional Secretaries would administer the loan distribution process. The government has also stipulated that detailed records of all transactions must be maintained and subject to regular inspection.

The scheme is initially intended for registered small and medium-scale millers, with repayment obligations arising after the purchased paddy is sold. Government officials have indicated that successful participants may receive similar support in future seasons. According to Finance Ministry representatives, the initiative addresses concerns about loan recovery from previous paddy purchasing programmes.

Mill owners have expressed support for the programme, suggesting it could incentivise operators who have left the industry to return while ensuring farmers receive fair compensation for their harvests. The meeting included attendance from relevant cabinet ministers, finance officials, and the Paddy Marketing Board leadership.