Sri Lanka sets 2020 main season paddy procurement prices


Procurement of the 2020 main “Maha” paddy rice crop has recently commenced. The Government set the minimum guaranteed price at LKR 50 per kg (USD 276 per tonne) for rice with a moisture content of up to 14 percent, not making any distinction among paddy varieties like in the past (FPMA Food Policies). In addition, for the first time in history, paddy with a maximum moisture content of 22 percent will also be purchased and its price was set at 44 LKR per kg (USD 243 per tonne). The Government has also announced the maximum quantity of paddy that will be purchased from the farmers according to the extent of cultivated land. Paddy with moisture content of 14 percent will be purchased through the Paddy Marketing Board, while paddy with a higher moisture content will be procured through small- and medium-sized enterprises and Co-operative societies under the direction of District secretariats. The Government has already provided nearly LKR 4 billion (USD 21 million) to the Paddy Marketing Board and District secretariats for implementing the programme. It also allocated LKR 100 billion for the issuance of soft loans at 8 percent interest to small-, medium- and large-scale rice millers to encourage the purchasing of paddy under the guaranteed price.

Country: Sri Lanka