ECONOMYNEXT – Sri Lanka will purchase paddy from farmers at 100 rupees a kilogram for quality in the current main harvest season to keep farmgate prices up, State Minister for Finance Ranjith Siyambalapitiya said.
State purchases, through district secretaries, will be limited to nadu type rice.
Paddy with maximum 14 percent moisture and 9 percent damaged grains will be bought at 100 rupees.
Paddy with moisture higher than 14 percent, but below 22 percent will be paid 88 rupees a kilo gram.
District secretaries are authorized to buy paddy provided carried over stocks from the last season has been sold.
President Ranil Wickremesinghe is planning to give rice to poor families as part of temporary income support for the crisis.
“On one side this activity will help subsistence farmers who are facing difficulties and on the other it will help poorest families,” Minister Siyambalapitiya said.
“Tax payers can be happy that maximum use is being made of their money.”
Sri Lanka is expecting at least 2.69 million metric tonnes of paddy in the current season.
Related Sri Lanka projects 2.69mn tonnes of paddy in Maha 2023 season
The paddy has to be milled into rice in March and April 2023.
Paddy millers will be paid 4.50 rupees a kilogram to dry paddy with higher moisture content allowing 12.5 percent reduction in weight. Millers will have to bear the cost of the sack within that fee.
The government will buy 2,000 kilos from farmers with one acre of paddy, 4,000 from farmers with 2 acres and 5,000 kilos from farmers with extents bigger than 2 acres. (Colombo/Feb14/2023)