Rs. 28.5 b to purchase paddy in Maha season 2011/2012

Thursday, 1 March 2012 00:01 - - {{hitsCtrl.values.hits}}

On a proposal made by President Mahinda Rajapaksa in his capacity as the Minister of Finance and Planning, Cabinet has decided to make available Rs. 28.5 billion as pledge loan to the Paddy Marketing Board, District Secretaries, Cooperative Societies and the private sector to purchase paddy from the farmers during 2011/2012 Maha season.

The expected paddy harvest from Yala season 2011 and Maha season 2011/2012 is around 4.5 million MT. With the expected paddy harvest in Maha season 2012, there will be a stock of 3.2 million MT of paddy with the Paddy Marketing Board.

According to estimates, the annual consumption of rice in the country is around 3.54 million MT. and with the collection of paddy of the Maha and Yala seasons 2012, there is to be a surplus of 1.01 million MT of paddy.

Provision of Rs.1280 million from State banks to the Paddy Marketing Board for the purchase of paddy; provision of Rs.1 0 15 million, made up as follows, to the District Secretaries for the purchase of paddy: Polonnaruwa Rs.250 million, Matale Rs.50 million, Kurunegala Rs.100 million, Moneragala Rs.30 million, Kilinochchi Rs.70 million, Mannar Rs.30 million, Hambantota Rs.10 million, Batticaloa Rs.25 million, Trincomalee Rs.50 million, Anuradhapura Rs.200 million, Ampara Rs.200 million; provision of Rs.15,000 million by the Bank of Ceylon, Rs. 5,000 million by People’s Bank and Rs. 1,500 million by the Regional Development Bank, to provide loans to the private sector for the purchase of paddy; Provision of Rs. 2,000 million by State Banks to Co-operative Societies for the purchase of paddy; to call for worldwide tenders to export the surplus of paddy; to utilise the stores complex constructed at Oyamaduwa under Deyata Kirula’ for the storage of paddy; and, to provide a stock of 500 MT of paddy to the World Food Organization (WFO), to which they have already consented.