Business · Sri Lanka Bureau
Sri Lanka allocates additional Rs2.5bn for paddy procurement amid bumper harvest
The government has approved supplementary funding to support paddy purchases as the island nation experiences a surge in rice production. The allocation aims to ensure farmers receive fair prices during the peak harvest season.
LSN Sri Lanka ·
Sri Lanka's cabinet has greenlit an extra Rs2.5 billion allocation for paddy procurement operations, responding to increased production volumes across the country's rice-growing regions. The decision underscores efforts to support agricultural sector stability during periods of high yield.
The additional funding will enable relevant government agencies to purchase greater quantities of paddy from farmers at guaranteed minimum prices. Such procurement programs are designed to protect cultivators from market volatility and ensure sustainable farming practices across the island.
The harvest surge comes as farmers benefit from favourable weather conditions and improved agricultural practices implemented over recent seasons. The procurement scheme plays a critical role in stabilizing rural incomes and supporting food security objectives.
Government officials have prioritized paddy purchasing during peak harvest periods to prevent price collapses that could discourage future production. The increased budget allocation reflects anticipated output levels and aims to streamline market operations during the busy season.