AreaSri Lanka

Commodity GroupRice

CommodityAll

Date29/01/2024

Policy CategoryProduction

Policy InstrumentProduction support, support prices, credit facility

DescriptionApproved a loan scheme to support purchases of paddy harvested during the 2024/25 Maha crop cycle. Under the initiative, LKR 9 billion (USD 29.3 million) worth of credit were expected to be issued by public and private banks, at concessional rates, to provide up to LKR 50 million (USD 162 500) to small and medium scale millers and up to LKR 25 million (USD 81 250) to entities storing and collecting paddy. Purchases under the drive would be subject to payment of minimum purchase prices to farmers. These minimum purchase prices were set at LKR 105, 120 and 130 per kg (USD 341, 390, and 423 per tonne) of Nadu, Samba and Keeri Samba, respectively, if the paddy's moisture content was 14 percent. If the moisture content exceeded 14 percent, minimum purchase prices of LKR 90, 100 and 120 per kg (USD of 293, 325 and 390 per tonne) of Nadu, Samba and Keeri Samba would apply instead.

NotesExchange rate as of 15 March 2024.