Govt to introduce loan scheme for small and medium-scale paddy millers

The government is planning to introduce a loan mechanism to support small and medium-scale paddy mill owners in purchasing paddy from farmers at a fair price, following discussions held with President Anura Kumara Dissanayake today (11).

The meeting, held at the Presidential Secretariat, focused on strengthening the contribution of small and medium-scale millers towards maintaining stable paddy prices and ensuring fair returns for farmers, the President’s Media Division said in a statement.

Mill owners briefed the President on difficulties faced in purchasing paddy and accessing bank facilities under the ‘Odapana loan’ scheme. They proposed that funds for paddy purchases be provided through District Secretaries or Divisional Secretaries, the PMD noted.

Minister of Trade, Commerce, Food Security and Cooperative Development Wasantha Samarasinghe said discussions would be held with District Secretaries to establish a mechanism to provide loans to small and medium-scale millers for paddy purchases.

Under the proposed scheme, paddy should be purchased from farmers at a minimum price of Rs. 120 per kilogramme, while purchases from an individual farmer would be limited to 4,000 kilogrammes per hectare.

Minister Samarasinghe stressed that detailed records of paddy purchases and the farmers involved must be maintained and regularly inspected.

The scheme is expected to initially cover registered small and medium-scale paddy mill owners, with the funds to be repaid to the government after the purchased paddy is sold, the PMD stated.

The government is also reportedly considering similar concessions in future seasons for millers who successfully complete the programme.

Mill owners welcomed the proposed loan scheme, saying it could encourage small and medium-scale millers who have left the industry to return, while helping farmers obtain a fair price for their harvest.

Finance Ministry officials also highlighted difficulties encountered in recovering loans provided under previous government-backed paddy purchasing programmes, the PMD added.

The meeting was attended by Minister of Agriculture, Livestock, Lands and Irrigation K.D. Lalkantha, Minister Wasantha Samarasinghe, Finance Ministry Secretary Dr. Harshana Suriyapperuma, Paddy Marketing Board Chairman Manjula Pinnalanda, Finance Ministry officials and paddy mill owners representing several districts.