Sri Lanka's government has initiated a paddy purchasing programme for the 2026 Yala season, channeling purchases through small and medium-scale rice mills and cooperative societies to provide farmers with guaranteed prices while supporting the local milling sector.
The government has rolled out a structured paddy acquisition initiative designed to bridge farmers and consumers while strengthening domestic rice milling operations. Under the 2026 Yala season programme, small and medium-scale rice mill owners and agricultural cooperative societies serve as intermediaries, purchasing paddy directly from farmers at predetermined rates. The scheme aims to guarantee fair compensation for growers while maintaining affordable rice availability in the market.
Financial support forms a key component of the initiative. Eligible participants—registered mills with maximum daily capacity of 25 metric tonnes—can access interest-free concessionary loans of up to Rs. 25 million. These funds must be repaid within 240 days from disbursement using revenue generated from processed rice sales, with no additional interest, commissions, or charges applied. Borrowers must purchase paddy quantities recommended by local Agricultural Research and Production Assistants at government-set rates: Rs. 120 per kilogram for standard-quality red and white Nadu varieties, and Rs. 130 per kilogram for Samba paddy.
Implementation responsibilities have been distributed among District Secretaries and the Department of Agrarian Development, operating under oversight from the President's Office and the Ministry of Finance, Planning and Economic Development. The programme commenced on August 12, requiring interested mill owners and cooperative societies to register at their respective District Secretariat offices before commencing purchasing operations. The Ministry of Agriculture, Livestock, Land and Irrigation is providing supporting coordination for the scheme.
