Cabinet approves Rs. 6.1 b for paddy purchasing

• Program to start in February from North and East provinces
• 150,000 metric tons of paddy to be purchased
• 10% increase in paddy yields

Paddy yield has increased by 10% for the Maha season due to good rainfall in the last few months of last year, raising yields to three million metric tons of paddy production, an official said yesterday.

Paddy Marketing Board Deputy General Manager Saman Palitha Bandara told Daily FT that high rainfall in the Maha season has resulted in an increase in the production and thus a provision of Rs. 6.1 billion has been allocated to purchase paddy in the Maha season from paddy farmers this year.

A program to maintain a fixed price for paddy and also to offer fair prices for paddy farmers has been set according to a Cabinet decision taken this week. The decision has confirmed to keep a fixed price of a kilogram of Samba type paddy to Rs. 41 and a kilogram of Naadu type paddy to Rs. 38 and to purchase paddy from a total of 18 districts.

“This program will commence from the first week of February in the East Province. And these funds will be allocated to purchase 150,000 metric tons of paddy from the three million metric ton production,” Paddy Marketing Board Deputy General Manager Saman Palitha Bandara said.