AreaSri Lanka

Commodity GroupRice

CommodityAll

Date23/01/2020

Policy CategoryProduction

Policy InstrumentGovernment procurement, support prices

DescriptionDecided that, in order to ensure remunerative prices for farmers at harvest time, it would establish a minimum certified price of LKR 45-50 per kg (USD 237-264 per tonne) of paddy, depending on moisture content, during the 2020 Maha procurement drive. This level compares with the LKR 38-41 per kg (USD 200-216 per tonne) price paid to producers during the 2019 Maha procurement drive. State purchases during the purchase campaign would be conducted through district secretaries, government agents and the Paddy Marketing Board. Moreover, LKR 100 billion (USD 527 million) worth of pledge loads would be issued for millers at a concessional interest rate of 8 percent in order to help them to purchase paddy at certified prices.

NotesExchange rate as of 15 May 2020.