Press briefing of Cabinet Decision taken on 2013-02-28

Purchase and sale of paddy during the Maha season 2012/2013

? the government has decided to vest the responsibility of the implementation of the Paddy Purchase Programme of the Government, with the District Secretaries / Government Agents, to ensure food security, a stable price for paddy for the farmers and for the sale of paddy to consumers at a concessionary rate. For this purpose, the state banks will provide pledge loans amounting to Rs.1798.11 million made up as follows for the purchase of paddy during the Maha season 2012/13:

* Bank of Ceylon - 391.59 million
* People's Bank - 816.29 million
* Regional Development Bank - 205.54 million
* National Savings Bank - 384.69 million

Funds to meet any shortfalls for the purchase of paddy will also be provided up to an amount of Rs.700 million from the Revolving Fund for the Purchase of Paddy maintained under the General Treasury. The above proposals submitted by Hon. Johnston Fernando, Minister of Cooperatives and Internal Trade, were approved by the Cabinet.