The Treasury has provided funds up to Rs.10,400 million to purchase paddy during Yala season at the price of Rs. 50 per kilo, the Finance Ministry said.
In a statement, it said under the first phase, the government expects to purchase 200,000 MTs of paddy.
"The Treasury has already taken steps to release funds up to Rs.10,400 million to the Paddy Marketing Board through state banks. In line with the President's manifesto, paddy was purchased at a price of Rs.50 per kilo during the last Maha season as well," it said.
The ministry said a kilo of Nadu paddy was bought for Rs.38 while a kilo of samba paddy was bought for Rs.41 in the previous years. “With the government's decision to purchase paddy for Rs.50 per kilo, the farmers will be able to sell their entire harvest," it said.