Sri Lanka to disburse US$ 33.8mln under loans to purchase paddy from farmers

Sri Lanka
By Editor_1
A rice farmer works on a paddy field in Agbopura, in the Trincomalee district, Sri Lanka, on February 16, 2022. Seventy-five per cent of the 890,000 hectares of agricultural land used for paddy farming in Sri Lanka is under smallholder farmers-.Devjyot Ghoshal/Reuters/File

COLOMBO – Sri Lanka has decided to disburse 33.8 million US dollars under a pledge loan scheme through the banks for small and medium-scale millers and cooperative societies to purchase paddy from farmers in the 2024/2025 Maha Season, which falls from September to March, the country’s department of development finance said on Thursday (9).

The department, which is under the Ministry of Finance, Planning and Economic Development, said the target groups of this loan scheme are subjected to the maximum daily paddy milling capacity of 25 metric tonnes.

All borrowers should have a valid business registration obtained from a relevant government institution. Under this loan scheme, they can obtain loans at an interest rate of 7% per annum with the amount of 169,000 US dollars to be repaid within 180 days, the department said.

– Xinhua

 

Editor_1
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