The Paddy Marketing Board (PMB) in Sri Lanka has initiated its paddy purchasing campaign for the 2023 season, receiving a total funding of one billion rupees, split equally between the Treasury and the Farmer Trust Fund. Since the commencement of purchasing last Monday, the PMB has acquired over 904,202 kilograms of paddy, primarily red paddy, spending 95 million rupees in the process. The PMB has established 36 warehouses across seven zones to facilitate the procurement process, with an additional 241 warehouses ready to be opened if necessary, boasting a collective storage capacity of 271,400 metric tons.
Despite the PMB's efforts to purchase paddy at government-set prices (Rs. 105 for Nadu, Rs. 120 for Samba, and Rs. 130 for Keeri Samba), farmers have shown a preference for selling their produce to the private sector, which offers higher prices. This market dynamic has pushed paddy prices above the government rate, resulting in minimal paddy sales to the PMB. The majority of the paddy procured by the PMB so far has been red paddy, with only a small quantity of white Nadu paddy.
Agriculture Minister Mahinda Amaraweera emphasized that while the PMB is prepared to purchase paddy at the government price, the private sector's higher buying price has diverted supplies away from the PMB. Amaraweera reassured that there is no shortage of selling opportunities for farmers within the country and that the PMB is fully equipped, both financially and logistically, to purchase paddy, particularly white Nadu paddy, from farmers unable to secure better prices elsewhere.