It is revealed that the Treasury has not yet notified the Paddy Marketing Board that funds have been allocated for the purchase of paddy.
If Rs. 5,000 million is allocated for the first round of paddy purchase, only the amount of paddy required for five days in the country will be able to be purchased from it, say representatives of farmer organizations.
The daily requirement of paddy in the country is 10,000 metric tons, of which 6,500 metric tons of rice is produced for daily consumption, and even if the government purchases a kilo of paddy at Rs. 100 per kilo during the Maha season this year, they claim that 50,000 metric tons of paddy will have to be collected.
Representatives of farmer organizations say that the price of a kilo of wet paddy has dropped to between Rs. 85 and 95 these days, and they are facing difficulties because paddy collectors are buying paddy at bargain prices. They also say that in some areas of the Northern Province, such as Kilinochchi, the price of a kilo of wet paddy has dropped to Rs. 85.
Farmers also say that they have been forced to sell paddy at low prices due to the government’s continued delay in issuing a guaranteed price for paddy. Representatives of farmer organizations say that the price of a kilo of dry paddy has now been reduced to Rs. 120 and that it is likely to decrease further in the future.
Although the government says that it will allocate money to purchase paddy, Treasury officials said at the COPE meeting held recently that no money has been requested from the Paddy Marketing Board for the purchase of paddy.
Representatives of farmer organizations say that by now, large-scale paddy mill owners and stock hoarders have started purchasing paddy, and that they are selling paddy to farmers at a reduced price because they are going to the fields to buy paddy.
However, internal sources within the Paddy Marketing Board indicate that the board has no plans to purchase paddy.
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