The Hon. Wasantha Samarasinghe

¶ 01 Two hundred and forty-four mill owners have had loans approved amounting to Rs. 6,528 million. Of that, Rs. 3,759 million, or 58 percent, has been disbursed so far. As I said, about 54 percent of paddy has been harvested; accordingly, disbursements are aligned with the harvested volumes. They obtain loans from banks. Some millers keep stocks in their warehouses; some cut the rice and release it to the market as rice because they roll over credit to keep the business going.

¶ 02 Hon. Member, you are correct that historically the Paddy Marketing Board (PMB) purchased paddy. Small and medium millers gave some of that paddy to their acquaintances, and many of them ultimately went bankrupt and could not repay loans. There are 1,759 registered mills in our country, but only about 650 are operational; even among those, some cannot operate due to lack of capital. Further, some are staying out of the process due to lack of funds. We previously said that those with NPLs should reschedule their loans and join this process with a Government Guarantee of Support. Some did so.

¶ 03 You also know that in the Anuradhapura District, in the areas of Thalawa and Rajanganaya, four mills had been sealed. Last Saturday I spoke to the police and arranged to grant those mill owners some time to repay because cases had been filed and had dragged on for two years. Those cases have now been delayed. We are the ones who took paddy to those four mills. Therefore, I ask the Opposition not to spread falsehoods.

¶ 04 Hon. Presiding Member, I must now explain what the Government is doing, because the Opposition is trying to mislead. As the Minister of Agriculture stated, bringing this programme is good. At the very least, since we say this here, some will learn the facts. They always think we hide information. No. For your understanding, I will table documents containing these details, so Members not present now can later see this information.

¶ 05 I also spoke about the PMB’s paddy purchases in recent years. The figures are as follows: - 2020: 29,685 metric tons - 2021: 52,852 metric tons - 2022: 78,361 metric tons - 2023: 2,154 metric tons - 2024: 2,758 metric tons

¶ 06 Hon. Member, we have commenced purchasing the Maha 2025 harvest. For Maha 2025, we set the paddy purchase price at Rs. 120 per kilogram. It was a good price for the farmer. However, farmers did not bring paddy to the PMB because they sold wet paddy at Rs. 110–115 per kilogram. In this season, we purchase dried paddy at Rs. 110 per kilogram from the open market, while last season some sold wet paddy at Rs. 110 per kilogram. A price has been set for moisture content as well.

¶ 07 A price has been fixed for 5 percent moisture. The Ministry of Agriculture and we expected the following: since traders were buying at Rs. 85–95 per kilogram in the open market, we introduced graded pricing for moisture to prevent exploitation. We showed farmers that paddy at 8 percent moisture would fetch Rs. 102 per kilogram, and fully dried paddy Rs. 120 per kilogram. Therefore, if you cannot at least sell 5 percent moisture paddy at Rs. 102 per kilogram, dry it properly and bring it; the Government will purchase at Rs. 120 per kilogram. At present, 54 percent of the paddy has been harvested. In some districts, up to 90 percent has been completed; in others, 45–50 percent, and some even 80 percent. Overall, 54 percent is complete. For your understanding and for the House’s awareness, I will table the relevant charts. As of now, the quantity harvested in Yala is about 1,522,000 metric tons; I will table that information as well.

¶ 08 So far, the Government has provided Rs. 8 billion to the PMB. As the State Minister said, the PMB owes Rs. 28.5 billion to banks. That is due to what you did in the past. The PMB owes Rs. 750 million to the People’s Bank. Altogether, the PMB owes Rs. 29,250 million. Why did the PMB incur such debts? Because paddy taken into custody was sold cheaply to acquaintances. Where is Harrison now? Paddy was sold to animal feed firms—you remember. Paddy stocks were given to friends at low prices, saying it was for animal feed. That is how you operated. Under the UNP Government led by Sajith Premadasa at times, PMB paddy was also sold in this manner. That is how the PMB was made to incur losses then.

¶ 09 However, today we have placed the PMB on a better footing. In the last Yala, we purchased 59.5 percent of the targeted harvest. As of today, the PMB alone has purchased 45,990 metric tons. We provided Sathosa Rs. 5,000 million via the Bank of Ceylon to purchase rice. The CWE had been shut; its accounts were not finalized for four years. We regularized the accounts, reactivated Sathosa, and in the last Yala purchased 3,980 metric tons. From today, Sathosa has begun purchasing paddy for this season as well, because Sathosa needs funds and stocks to sell rice. We are now cutting and releasing to the market the rice under Government control. When I was explaining this, Hon. Nalin Bandara interjected and left. Hon. Presiding Member, those who bring motions and speak in these debates should at least remain to hear the answers to what they themselves raised. They are telling blatant lies.

¶ 10 This country’s small and medium millers are being provided bank loan facilities. So far, Rs. 6,500 million has been given to them. Large millers alone have been provided Rs. 16,000 million for this season. Altogether, Rs. 21,000 million has been disbursed. Therefore, during the Maha, around Rs. 25,000 million worth of paddy will be purchased by these two segments. Through the banking system, the Government is facilitating financing to purchase paddy valued at around Rs. 40,000–50,000 million. In addition, this season the Treasury has provided Rs. 8,000 million to the PMB. The rice purchased for Sathosa must be milled and released to the market. Why? Because they prefer the Government to leave the market. There are those who campaigned using helicopters in Polonnaruwa, came on the National List, then went back to ask money from Sajith Premadasa—these are the people they want to strengthen. No. Last season we set a controlled price of Rs. 230 for Nadu rice. The shortfall was bridged by importing and providing stocks. Purchasing at Rs. 120 per kilogram and providing rice at Rs. 230 is how we stabilized our market.

¶ 11 Hon. Presiding Member, I am not saying this idly. The rice we have purchased is being milled and released to the market. Through the National Sathosa, we are distributing five-kilogram bags of Kekulu and Nadu nationwide. We have already commenced rice sales. The PMB stocks are also being milled and distributed. How are we distributing? Not to friends; not to affiliates; not under-the-table; not to animal feed mills disguised as friends to make windfall profits. How did we do it? We called public tenders for cutting and packing. Please see the advertisements we published on 25.05.2025 in three newspapers including “Silumina.” We determined the delivered price for our stocks to be cut, packed in our designed bags, and transported to our warehouses. Bidders submitted tenders; we held a pre-bid meeting and discussed. Only large mills—about six to seven firms—have the capacity to do this with the required quality. Small mills cannot always ensure quality. Our consumers are used to quality rice now. That is a development created within the market by large millers, which is good; we need quality rice. The technology is now also coming to small mills—removing black tips, better polishing, boilers, silos. That is good. Our Hon. Susanta Kumara Navaratna spoke about that. A mill owner from Anuradhapura told us he plans a large mill with a capacity to store a million kilograms of paddy and four silos. Such technology and knowledge added to the industry is good. But what did past governments do? They bankrupted the PMB; they shut Sathosa; they gave warehouses to friends.

¶ 12 Now, as soon as we came, they ask “Where are the stocks you took?” Yes, by now we have procured around 50,000 metric tons across these two seasons. Our expectation is to reach 80,000 metric tons by the end of this Yala. The Government’s aim is to purchase around 200,000 metric tons per year. In line with that, we will mill and release to the market, using competitive tenders to obtain the best terms—maximizing returns to Sathosa. We did not give to friends. If Opposition MPs, who come here and tell lies cheaply, had come to the House, they would have learned these facts.

¶ 13 Furthermore, Hon. Member, while they talk about fertilizer subsidies and paddy, they also raised the matter of cultivation in Yala fields. Therefore, for the Leader of the Opposition’s information too, I must state this: he speaks whatever comes to mind, assuming people will accept it. Not so. Hon. Presiding Member, I will table documents listing, district by district, the paddy varieties cultivated and the harvested quantities.

¶ 14 Opposition Members can come tomorrow and examine these. I say this seriously because we know there will be a shortfall in Samba production this season, and some reduction in Keeri Samba as well. Why? Because the last season’s Nadu and harvests were lower, so people shifted. As per our current estimates for this season: Nadu and Kekulu are about 65 percent; red rice 22 percent—together 87 percent. Samba and Keeri Samba account for 13 percent. Domestic consumption is roughly 65 percent Kekulu/Nadu, 22 percent red, and the remaining 13 percent Samba/Keeri Samba. The Leader of the Opposition asked why rice is imported when there is a surplus. He does not realize other industries now use rice. People consume about 21 million kilograms of chicken per month, and about 10 million eggs per day.

¶ 15 Please allow me two more minutes, Hon. Presiding Member.

¶ 16 Regarding industries, there is also a rice flour industry. Further, breweries alone use nearly 20,000 metric tons of rice. An entrepreneur is setting up a sake distillery and says he will need 12,000 metric tons per year. There is a rice flour industry as well. Additionally, Sri Lanka exports around 60,000 metric tons of rice. Considering all this, we as a Government have mapped the linkage between domestic production and industrial demand. The Minister of Agriculture and his team are discussing these matters. This season, 527,000 hectares were cultivated, and with the fertilizer subsidy about 544,000 hectares. In the next Yala, we must increase cultivated area to about 825,000 hectares, surpassing the 544,000 hectares cultivated this season. Then our cultivated extent will rise. Yields must also improve: from 80–90 bushels per acre to at least 120–150. We need quality seed and higher productivity. When Indian rice comes here, it costs around Rs. 120–125 per kilogram landed; our paddy purchase is Rs. 120 per kilogram.

¶ 17 Now some are asking Rs. 150 per kilogram for paddy; then how can consumers afford? Therefore, to protect farmers we set Rs. 120 per kilogram, and to protect consumers we set Rs. 230 per kilogram for rice. The PMB and Sathosa together are managing both ends so consumers get rice without shortage.

¶ 18 We delivered fertilizer subsidies on time. Last year’s delays arose because the Budget allocated funds ahead of Maha commencing in December; when Maha starts, funds for the latter part must be set aside earlier. Minister of Agriculture Lal Kantha has submitted a Cabinet proposal to allocate Rs. 5 billion from next year’s provision to this season to avoid delays. In Yala, without delay, we provided around Rs. 14,000 million as fertilizer subsidy. Yet now they try to mislead—do not lie in this House and leave. If you bring a motion and fix it in the Order Paper, at least remain to learn what the Government has done.

¶ 19 Hon. Presiding Member, I am pleased to join this debate because the measures we have taken have reactivated a bankrupted PMB and a shuttered Sathosa to participate in wholesale trade. Through this we are responding to those who tried to create a mafia in the rice market. We are milling Government-owned paddy and releasing rice to the market. By doing so, we are proceeding with a programme to moderate retail prices by 10–20 percent. Through these measures we ensure fair prices for farmers’ paddy and for consumers’ rice. Using PMB and Sathosa storages, public funds, and bank financing, and PMB-provided credit, we are protecting both farmers and consumers, while delivering fertilizer subsidies on time, rebuilding the country together with farmers under the Malimawa Government. With that reminder, I conclude in silence.

¶ 20 Thank you, Hon. Presiding Member.

¶ 21 Question No. 02 was not reached.

¶ 22 It being past 5.30 p.m., the Hon. Presiding Member adjourned Parliament without Question put.

¶ 23 Parliament adjourned accordingly at 5.47 p.m. until 9.30 a.m. on Thursday, 11th September, 2025.