Govt to purchase Yala harvest

Nadira Gunatilleke

Cabinet approval has been granted to commence purchasing of paddy with immediate effect in all districts where the Yala crop is being harvested utilizing the available balance, Rs 5.5 billion of the revolving fund, Cabinet spokesman and Media Minister Keheliya Rambukwella said.

According to Minister Rambukwella, there is Rs 5.5 billion in the revolving fund to purchase paddy from farmers. It is estimated that an allocation of Rs 2,175 million is required to procure paddy.

The main objective of the Cabinet paper presented by Cooperatives and Internal Trade Minister Johnston Fernando is raising funds by milling the paddy stock of the Paddy Marketing Board and to stabilize the price of rice to maintain the price of this paddy during the 2011 Yala season in the market without fluctuation, he said.

Minister Rambukwella pointed out that the same strategy was in place in the past three years to stabilize the price of rice and it is now in operation.

The paddy harvest is very satisfactory especially in the North and East. Since there is peace in those two provinces, farmers engage in paddy cultivation freely and earn a good profit.