Aug 04, Colombo: The Sri Lankan government has received permission to spend Rs. 2.175 billion to immediately buy the Yala season paddy harvest from farmers across the island.
The Cabinet yesterday approved the purchase of paddy utilizing the available balance of the Revolving Fund with immediate effect in all districts where Yala Crop is being harvested.
The government says the Revolving Fund has is Rs.5.5 billion for the purpose of purchasing paddy from farmers and allocation of Rs.2.175 billion is estimated to be needed to procure the harvest.
The government plans to raise funds by milling the paddy stock of the Paddy Marketing Board and to stabilize the price of rice to maintain price of 2011 Yala Season harvest in the market without fluctuation.