Rs. 40 billion allocated to pay farmer reparation | Daily News

Rs. 40 billion allocated to pay farmer reparation

PMB to buy paddy at Rs.75 per kilo:

The Cabinet of Ministers has granted their consent to allocate Rs.40 billion to provide compensation to farmers for crops damaged during the 2020 Maha season.

Agriculture Minister Mahindananda Aluthgamage said the compensation will be provided under the Rs. 229 billion relief package announced by the government recently.

According to the Minister, paddy farmers used around 800,000 hectares of land for cultivation during the Maha Season.

Minister Aluthgamage further said Cabinet also granted their consent to purchase a kilogram of paddy for Rs.75 from today from farmers through the Paddy Marketing Board (PMB).

The Paddy Marketing Board is expected to secure Rs.29.8 billion through State banks for the Government’s Paddy Purchasing Programme during the 2021/2022 Maha Season.

The Minister said in case, there is a reduction in the paddy harvest during the Maha Season, a compensation of Rs. 25 per kilogram of paddy will be provided to farmers.

He said through the funds, they can compete with the private sector when purchasing paddy from farmers. Minister Aluthgamage charged that the rice mill owners have been manipulating the system which had resulted in prices of rice increasing to Rs. 150 to Rs. 200 and the decision to import a stock of rice was taken to stabilize the price.


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