It has been revealed that the Treasury has not yet notified the Paddy Marketing Board (PMB) of any funds allocated for the purchase of paddy during the current Maha season. This delay has left farmers in a precarious situation, as they are compelled to sell their produce at significantly reduced prices due to the absence of a guaranteed government price.
According to representatives of farmer organizations, an allocation of Rs. 5,000 million would only suffice to purchase the country’s paddy requirement for five days. They estimate that the daily national demand for paddy stands at 10,000 metric tons, with 6,500 metric tons of rice needed for daily consumption. Even if the government purchases paddy at Rs. 100 per kilogram during this season, it would need to procure 50,000 metric tons to meet the demand.
Farmers report that the price of wet paddy has plummeted to between Rs. 85 and Rs. 95 per kilogram in recent days, with some areas in the Northern Province, such as Kilinochchi, seeing prices as low as Rs. 85 per kilogram. This sharp decline has been exacerbated by paddy collectors and large-scale mill owners taking advantage of the situation, purchasing paddy at bargain prices directly from farmers.
The delay in announcing a guaranteed price for paddy has further worsened the crisis. Farmers claim they have no choice but to sell their produce at these low rates to meet immediate financial needs. Meanwhile, the price of dry paddy has also dropped to Rs. 120 per kilogram, with fears that it may decrease further in the coming weeks.
Despite assurances from the government that funds would be allocated for paddy procurement, Treasury officials recently informed the Committee on Public Enterprises (COPE) that no request for funds had been made by the Paddy Marketing Board. This lack of action has raised concerns about the government’s commitment to supporting farmers during this critical period.
Representatives of farmer organizations warn that large-scale mill owners and paddy stockpilers have already begun purchasing paddy at reduced prices, further marginalizing small-scale farmers. Internal sources at the Paddy Marketing Board have also indicated that the board currently has no plans to intervene in the market.
The ongoing delay in addressing this issue has left farmers in a dire situation, with many struggling to cover their production costs. Stakeholders are urging the government to take immediate action to stabilize paddy prices and provide much-needed relief to the agricultural community.
