SME paddy businesses to get pledge loans at concessional rates every cultivation season

The Cabinet of Ministers has greenlighted the proposal to implement the Pledge Loan Scheme provided to small and medium scale paddy mill owners for purchasing paddy as an annual programme.

Speaking during the Cabinet press briefing held today (31), Cabinet Spokesman, Minister Dr. Nalinda Jayatissa stated that with the aim of ensuring a fair price for the paddy harvest and strengthening small and medium scale paddy mill owners, the implementation of the Pledge Loan Scheme for small and medium scale paddy mill owners through state banks at a concessional interest rate was decided at the Cabinet meeting held on August 14, 2023.

Since it has been observed that this program has achieved high progress in previous seasons, it has been identified as appropriate to implement the said program in every season from the 2024/25 Maha season, the Minister noted.

Accordingly, the proposal submitted by the President in his capacity as the Minister of Finance, Planning and Economic Development to implement a loan scheme up to a maximum of Rs. 50 million at a concessional interest rate through public and private banks to small and medium scale paddy mill owners (including cooperative societies operating paddy mills) with a maximum daily paddy threshing capacity of up to 25 metric tons, subject to certain specific criteria, was approved by the Cabinet.