Govt clarifies delay in setting guaranteed price for paddy purchase

Cabinet Spokesman, Minister Dr. Nalinda Jayatissa says that steps will be taken to establish a guaranteed price for paddy purchase as soon as market prices begin to decline.

Speaking during the Cabinet press conference held today (28), the Minister emphasized that at present, it is more beneficial for farmers to sell their paddy to the private sector rather than to the government.

“The benefit for farmers at this moment is not to supply paddy to the government but to sell it to private buyers who process it into rice and release it to the market.”

“However, after large-scale paddy purchases, the government must maintain a stock to manage supply. We are intervening by repairing paddy warehouses, and the government has allocated funds for paddy purchases. However, the government cannot and should not do that. Many small and medium-scale entrepreneurs in our country are engaged in the paddy market.”

“Our objective is to intervene in a way that benefits both farmers and consumers while maintaining price stability. Our intervention should neither be unfair to farmers nor burdensome to consumers. There is no intention to remove the rice price control, and we plan to introduce a minimum guaranteed price for paddy accordingly”, the Minister expressed.

“As the Deputy Minister mentioned, the government will announce guaranteed prices as soon as it observes a decline in paddy prices in the market. There is no need for concern at this time,” he added.