Rs. 40 billion allocated to compensate paddy farmers for crop losses in Maha Season

(LANKAPUVATH | COLOMBO) – The government has decided to pay a compensation of Rs. 25 per kilogram of paddy to the affected farmers in case of a reduction in the paddy harvest during the Maha season this year.

Minister of Agriculture Mahindananda Aluthgamage addressing a media briefing held today (25) said Rs. 40 billion has been allocated to provide as compensation to the farmers for their losses.

It is planned to implement the Government Paddy Purchase Program during the 2021/2022 Maha Season with the objective of providing a fair price for the paddy harvest of the farmers and maintaining a secure paddy reserve by the Government.

The purchase of the paddy harvest is done directly by the Paddy Marketing Board and by the District Secretaries/ Government Agents through the small and medium scale paddy mill owners.

The required allocation of Rs.29,805 million for paddy purchases will be secured through state banks.

Accordingly, taking into consideration the proposals made by the Minister of Agriculture, the Cabinet has decided to purchase of Paddy by the Paddy Marketing Board at competitive prices with the Private Sector under the Government Paddy Purchase Program for the Maha Season 2021/2022.

The Cabinet of Ministers have also decided in case, there is a reduction in the paddy harvest in the 2021/2022 Maha season, to provide a compensation of Rs. 25 per 1 kg of paddy to secure the income level of the paddy farmers affected due to this.

Accordingly, the Paddy Marketing Board will purchase a kilogram of paddy at Rs. 75, said the Minister of Agriculture Mahindananda Aluthgamage.

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