A pledge loan scheme for Small and Medium Scale Paddy Millers and Cooperative Societies, at a concessionary interest rate is scheduled to be implemented for purchasing paddy in Maha Season 2025/26.
The Ministry of Finance said in order to maintain a reasonable price for farmers, the loan scheme will be implemented with effect from today (01).
Accordingly, the loan scheme for SME Paddy Millers and Cooperative Societies will subject to the maximum daily milling capacity of 25MT. All borrowers should have a valid business registration obtained from a relevant government institution, and a licence issued by the Paddy Marketing Board, the Finance Ministry stated.
Under the loan scheme, loans value upto Rs. 50 million at interest rate of 7% per annum can be obtained while the respective loans should be re-paid within 180 days.
A total of 15 banks have been selected for the loan scheme.
The estimated total value of the loans to be disbursed by banks under the loan scheme is approximately Rs. 10,000 million for Maha season 2025/26, and it has been planned to purchase paddy at a Minimum Purchase Price (MPP) declared by the Department of Agriculture in order to ensure a reasonable price for paddy harvest of farmers, the Ministry of Finance added.
