A new concessionary pledge loan facility for small and medium-scale paddy millers and cooperative societies has been rolled out in preparation for the Maha cultivation season 2025/26, the Ministry of Finance announced.The scheme, which comes into effect today (01), is intended to help maintain fair prices for farmers by strengthening the capacity of millers and cooperatives to purchase paddy during the peak harvest period.
Eligibility for the facility is limited to paddy millers and cooperative societies with a maximum daily milling capacity of 25 metric tonnes. Applicants must also hold a valid business registration from a recognized government authority and possess a license issued by the Paddy Marketing Board, the Ministry said.
Under the programme, eligible borrowers can obtain loans of up to Rs. 50 million at a concessional annual interest rate of 7 percent. All loans must be settled within a repayment period of 180 days. A total of 15 licensed banks have been selected to participate in the scheme.
The Ministry of Finance estimates that approximately Rs. 10 billion will be disbursed through the banking sector under this initiative during the Maha 2025/26 season. Paddy purchases under the scheme will be conducted at the Minimum Purchase Price (MPP) set by the Department of Agriculture, with the objective of safeguarding reasonable returns for farmers.
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