The Government has taken a significant step to support small and medium-scale rice mill owners and cooperative societies by releasing Rs.10 billion under a concessional interest rate loan scheme.
This initiative, effective from January 03, aims to facilitate the procurement of paddy harvests in the 2024/2025 Maha season.
The primary goal is to ensure fair prices for paddy farmers by providing financial support to rice mill owners and cooperatives. The scheme targets those with a maximum daily milling capacity of up to 25 metric tons (MT).
All loan applicants are required to have a valid business registration certificate obtained from a relevant Government institution, as specified by the Development Finance Department.
Through this scheme, small and medium-scale rice mill owners or cooperative societies can secure a maximum loan amount of Rs. 50 million with an annual interest rate of 7 percent. The loan must be repaid within 180 days.
The scheme will be implemented through several banks, including the Bank of Ceylon, People’s Bank, Regional Development Bank, State Mortgage and Investment Bank, Hatton National Bank, Seylan Bank, Sampath Bank, Commercial Bank, DFCC Bank, National Development Bank, Nations Trust Bank, Sanasa Development Bank, Union Bank, Pan Asia Bank, Amana Bank, and Cargills Bank.
The total value of loans to be released through this scheme amounts to Rs. 10,000 million. The Agriculture Ministry has announced a minimum price for purchasing paddy under this scheme to ensure fair prices for farmers’ paddy harvests. Based on a Cabinet decision made on December 30, 2024, this loan scheme will be operational from January 03 to May 15, 2025.
This initiative is expected to provide significant support to the paddy farming community, helping them secure fair prices for their harvests, while promoting the sustainable development of the rice milling industry.
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