Concessionary loan scheme for small and medium scale paddy millers

3 September 2023 10:35 am Views - {{hitsCtrl.values.hits}} 2 Bookmark

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In order to maintain a reasonable price to farmers and strengthen the SME paddy millers, a pledge loan scheme under a concessional interest rate for Small and Medium Scale paddy millers has been implemented from 1st September for paddy purchasing during the 2023 Yala season, the Finance Ministry said.

Accordingly, small and medium scale paddy millers with a valid business registration, subject to the maximum daily milling capacity of 25MT of paddy can obtain loans. A miller can get the loan at the effective interest rate of 16% per annum under the maximum loan amount of Rs. 50 million. Out of the effective interest rate, 12% interest rate has to be borne by the respective SME paddy millers and the interest subsidy is 4%.

The respective loan should be repaid within 180 days. The total value of the loans to be disbursed by the People’s Bank and Bank of Ceylon is Rs. 4,000 million.

This concessionary loan scheme which has been commenced based on a Cabinet decision dated 14.08.2023, is implemented from 1st September to 30th November of this year.

Comments - 2

Too much consessions will cause losses to goverment Sunday, 03 September 2023 11:02 AM

Paddy farming is bad business. Sri Lanka should be growing crops that can earn, and then farmer can make 3 or 4 time money than growing paddy for make into rice for locals. India has better economy of scale for paddy and rice and importing from there will in the long run be much better than the backwards model Sri Lanka has for agriculture.

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Dee Sunday, 03 September 2023 01:59 PM

They will take the low interest loan, grow and harvest- then sell at much higher price than imports. Same like poultry. Taking the benefits given by the government then sell above market price putting the blame on the government! The foolish consumers will then comment about having elections and changing ministers!

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