President Anura Kumara Dissanayake met with small and medium-scale paddy mill owners to discuss a new financing mechanism aimed at securing fair prices for farmers and stable consumer prices through improved access to credit.

President Anura Kumara Dissanayake convened discussions with representatives of small and medium-scale paddy mill owners at the Presidential Secretariat on Tuesday to address challenges in the rice milling sector and explore solutions for price stabilization. The mill owners outlined operational difficulties, particularly regarding paddy procurement and access to financing through existing loan schemes.

Under the proposed mechanism, District and Divisional Secretaries would serve as intermediaries in providing loans to registered mill owners for paddy purchases. The government has set a minimum purchase price of Rs. 120 per kilogramme for farmers, with a maximum quantity of 4,000 kilogrammes per hectare per farmer. Minister of Trade, Commerce, Food Security and Cooperative Development Wasantha Samarasinghe emphasized that detailed records of all transactions must be maintained and regularly inspected by authorities.

The scheme represents a revival of previous government-supported paddy purchasing systems, though officials acknowledged past difficulties with loan repayments under similar programmes. Participants expressed optimism that improved financing access could encourage mill owners who have exited the industry to return, while supporting farmer incomes. The government expects loans to be repaid following rice sales, with plans to extend similar support in future seasons based on programme performance.

Representatives from ten districts attended the meeting, including Anuradhapura, Polonnaruwa, Badulla, and others, alongside government ministers and officials from the Finance Ministry and Paddy Marketing Board. The initiative is framed as part of broader efforts to strengthen food security and support rural livelihoods.