Concessionary loan scheme announced to purchase paddy in Maha Season

A new loan program has been introduced for Small and Medium Scale Paddy Millers and Cooperative Societies in Sri Lanka, allowing them to buy paddy during the 2025/2026 Maha Season at a lower interest rate. The Ministry of Finance announced that this program starts today (01) to help keep prices fair for farmers. The scheme is available for those with a maximum daily milling capacity of 25MT. To qualify for the loan, all applicants must have a valid business registration from a government agency and a license from the Paddy Marketing Board, according to the Finance Ministry. Borrowers can take loans up to Rs. 50 million at a 7% annual interest rate, with repayment due within 180 days. Fifteen banks have been chosen to participate in this loan program. The total amount of loans expected to be given out by these banks is around Rs. 10,000 million for the Maha season of 2025/26. The loans aim to purchase paddy at a Minimum Purchase Price (MPP) set by the Department of Agriculture to ensure farmers receive a fair price for their harvest, the Ministry of Finance added.