The government has launched a programme to purchase quality paddy from farmers through small and medium-scale rice mill owners and cooperative societies as part of the 2026 Yala season paddy purchasing programme.
The initiative is aimed at ensuring farmers receive a fair price for their harvest under the government’s guaranteed price policy, while making rice available to consumers at affordable prices and strengthening the small and medium-scale rice milling sector.
The programme will be implemented by District Secretaries and the Department of Agrarian Development with the support of the Ministry of Agriculture, Livestock, Land and Irrigation, under the supervision of the President’s Office and the Ministry of Finance, Planning and Economic Development.
Registered small and medium-scale rice mills with a maximum daily milling capacity of 25 metric tonnes, as well as cooperative societies operating rice mills with the same capacity, are eligible to participate.
Under the programme, participating mill owners and cooperative societies will receive interest-free concessionary financing of up to Rs. 25 million.
They will be required to purchase the quantity of paddy recommended by the Agriculture Research and Production Assistant in the relevant area at the government-guaranteed prices.
The government has set the purchase price for standard-quality red and white Nadu paddy at Rs. 120 per kilogram, while standard-quality Samba paddy will be purchased at Rs. 130 per kilogram.
Participants will be required to repay the full amount obtained from the sale of the purchased paddy within a maximum period of 240 days from the date of receiving the funds.
No interest, commission or other charges will be imposed on the funds provided under the programme, according to the Ministry.
The 2026 Yala season paddy purchasing programme commenced on August 12, and eligible rice mill owners and cooperative societies are required to register at their respective District Secretariat offices to participate.
The Ministry said participants can commence purchasing operations after completing the registration process.
