The Hon. K.D. Lal Kantha - Minister of Agriculture and Lands

¶ 01 The Paddy Marketing Board (PMB) has successfully intervened in this Yala season compared to the last Maha, purchasing more paddy than usual. The Government is intervening in two main ways: first, through direct PMB purchases; second, by facilitating bank credit (including the well-known “Odapana” loan scheme) to those who store purchased paddy and to mill owners.

¶ 02 Price setting is based on cost of production. Some have quoted Rs. 150, 160, 170 per kilogram; those were context-specific figures tied to then-prevailing costs. We never claimed such prices are guaranteed or permanent. The price must be computed against actual production costs. Our primary focus is to increase yield per hectare. As yields rise and costs are optimized, the cost-based purchase price can be lower while remaining fair.

¶ 03 Currently, the indicative price of Rs. 120 per kilogram is not a fixed or universal rate; last Maha too, Naadu was bought around Rs. 120/kg. This time, costs have not risen, and in some areas have even reduced slightly, hence the present Rs. 120/kg aligns with cost. If Yala production costs had increased, the fair price would have been Rs. 130 or 140 accordingly. Our formula is to add a profit margin—30 percent—over verified production cost. If anyone argues the margin should be 40 or 50 percent, that is a separate discussion, but the current Rs. 120/kg flows from an established method.

¶ 04 We recognize genuine issues this Yala. Although PMB is buying at Rs. 120, logistical gaps mean farmers far from PMB depots or facing moisture-content constraints cannot always sell to PMB. PMB still lacks sufficient dryers; thus, only paddy meeting the standard is accepted. Private buyers used this situation to pay below Rs. 120 in some places. While that happened, available data do not show a nationwide severe crisis: if there were, we would already see mass farmer protests across the country. We accept concerns exist and are addressing them.

¶ 05 PMB once had a strong fleet—older members here remember “V.A.M.” lorries on the roads. Today it is much diminished. We accept the need to rebuild. The Government is working to accumulate adequate buffer stocks and to support farmers systematically, including ensuring timely fertilizer assistance.