Sri Lanka's government will release funds this week to rice mill owners through an interest-free loan scheme aimed at supporting paddy purchases during the current Yala harvest season.
The government plans to distribute funds to rice mill owners under a concessionary lending programme designed to facilitate the purchase of paddy from farmers during the ongoing Yala cultivation season, according to Deputy Minister of Agriculture Namal Karunaratne. The disbursement is expected to occur within the week through District Secretaries across the country.
Under the scheme, rice mill owners can access interest-free loans of up to Rs. 25 million each for paddy procurement. The initiative aims to ensure continuous purchasing of paddy from farmers while maintaining stable market conditions during the harvest period. The Deputy Minister stated that the government has already secured more than 45,000 metric tons of paddy as part of its broader effort to guarantee market access for farmers and protect farm-gate prices.
Parliament approved a supplementary estimate of Rs. 7.5 billion last Friday to support the continuation of the paddy purchasing programme and provide additional assistance to the farming community. The combined efforts of direct government purchases and the loan scheme to rice millers represent an attempt to stabilise the paddy market during the peak harvest season.
