Rs. 6 b pledge loan scheme for small and medium paddy mill owners for Yala season 2024

Friday, 21 June 2024 03:37 -     - {{hitsCtrl.values.hits}}

The Cabinet of Ministers on Wednesday approved a Rs. 6 billion pledge loan scheme to support small and medium-scale paddy mill owners during the Yala season 2024. 

The move which is aimed at boosting the agricultural sector, will be implemented through participatory banking institutions at a concessionary loan rate.

The decision follows the Cabinet’s previous approval on 8 January, to launch a similar loan scheme for the Maha season 2023/24 and the Yala season 2024. 

“The scheme’s objective is to facilitate the purchase of paddy, ensuring financial assistance is available to small and medium-scale mill owners at favourable terms,” Cabinet Co-Spokesman and Minister Bandula Gunawardena said at the weekly post-Cabinet meeting media briefing yesterday.

He said the implementation strategy for the Yala season 2024 was discussed in a series of meetings involving the Ministry, relevant departments and representatives from both State and private banks. Gunawardena said these discussions were chaired by a Deputy Secretary to the Treasury.

“The move is expected to provide significant relief to small and medium-scale paddy mill owners, enhancing their capacity to purchase and process paddy, thereby stabilising the market and supporting the livelihoods of those dependent on the agricultural sector,” he added.

The proposal, submitted by President Ranil Wickremesinghe in his capacity as the Minister of Finance, Economic Stabilisation and National Policies, received the Cabinet’s approval based on the agreements reached during these discussions.