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Two State banks fail to give Rs. 2 bn to PMB

13 Sep 2022

  • Agri Minister to inform Prez and Cabinet 
  • No funds in PMB coffers to purchase paddy, millers purchasing at low prices
BY Buddhika Samaraweera   Minister of Agriculture Mahinda Amaraweera is to inform President Ranil Wickremesinghe and the Cabinet regarding the failure on the part of two State banks to provide a sum of Rs. 2 billion that was recommended by Cabinet to be given to the Paddy Marketing Board (PMB) for the purchase of paddy. Speaking to The Morning yesterday (12), an official of the Agriculture Ministry said that as rice mill owners are purchasing paddy from farmers at low prices, the Ministry had decided to purchase paddy at guaranteed prices that were recommended by a particular committee. He also said that after the submission of a Cabinet paper seeking approval for the said programme, the Cabinet had recommended that a sum of Rs. 2 billion be given to the PMB through two State banks to implement the programme. “The relevant banks have not yet released the sum of Rs. 2 billion to the PMB. Therefore, the PMB purchased about 7,000 metric tonnes of paddy from farmers island-wide using its own funds. When the PMB deposited the money to be paid to the farmers to the bank accounts, the banks had deducted a portion of that money for a loan previously obtained by the PMB. With this, the PMB didn't get the sum of Rs. 2 billion, and also lost a portion of its own funds,” he said. Noting that the PMB has so far spent nearly Rs. 760 million to purchase paddy, he said that it is unable to continue purchasing paddy as there is no money left with the PMB as of now. As a result, he said that the paddy mill owners are now purchasing paddy from farmers at lower prices such as Rs. 80 per kg, which is a serious injustice to farmers who have cultivated paddy at a huge cost. “Farmers have been rendered helpless, as the PMB is not in a capacity to purchase their paddy. They have had to sell paddy to mill owners at very low prices. This is an injustice to farmers who cultivated paddy amidst challenges such as the fertilisers and agrochemicals shortage. Taking this matter into account, Amaraweera is to take this issue up at the Cabinet meeting scheduled to be held today (yesterday). In addition, he is also hoping to inform the President and get the relevant banks to issue the sum of Rs. 2 billion to the PMB,” he added yesterday (12). A committee appointed by the Ministry to determine the prices of paddy which the PMB would perchance from the farmers during the Yala season, had recently recommended to purchase a kilogram of Nadu paddy at Rs. 120, Samba and Kekulu paddy at Rs. 125 per kg, and Keeri Samba paddy at Rs. 130 per kg. Accordingly, the PMB commenced purchasing paddy from farmers islandwide in mid-August.  


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