Govt. rolls out Rs. 6.5 b concessionary loan scheme to support paddy purchasing in Yala season

Tuesday, 1 July 2025 02:09 - - {{hitsCtrl.values.hits}}

Loans up to Rs. 50 m per borrower at 7% annual interest with 180-day repayment
Scheme runs from today to 15 November to stabilise market prices and ensure farmers get Minimum Purchase Price
Targets SME paddy millers and cooperative societies with daily capacity of at least 25 tons and valid PMB registration
Total of 15 State and private banks to help disburse funds

The Government yesterday announced a fresh concessionary loan scheme aimed at ensuring fair prices for paddy farmers during the 2025 Yala harvesting season, extending relief to small and medium-sized (SME) paddy millers and cooperative societies.

The program, scheduled to run from today (1) to 15 November 2025, will provide loans of up to Rs. 50 million per borrower at an annual interest rate of 7% with repayment due within 180 days, the statement issued by the Finance Ministry noted.

The scheme targets SME paddy millers and cooperative societies operating with a minimum daily capacity of 25 tons, who hold valid business registration and licences from the Paddy Marketing Board (PMD).

The move follows the Cabinet of Ministers’ approval on 30 December 2024 and is designed to stabilise market prices by enabling millers and cooperatives to purchase paddy at the Minimum Purchase Price (MPP) declared by the Department of Agriculture.

In total, 15 State and private banks will disburse around Rs. 6.5 billion in loans under this scheme. The participating banks include Bank of Ceylon, People’s Bank, Regional Development Bank, Hatton National Bank PLC, Seylan Bank PLC, Sampath Bank, Commercial Bank of Ceylon PLC, DFCC Bank PLC, National Development Bank PLC, Nations Trust Bank, Sanasa Development Bank, Amana Bank PLC, Cargills Bank PLC, and Pan Asia Banking Corporation PLC.

The Finance Ministry stated this initiative builds on a similar pledge loan facility rolled out during the 2024/2025 Maha season, which saw around Rs. 6.85 billion disbursed to support SME paddy millers and cooperative societies in securing farmers’ harvests.

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