The Hon. K.D. Lal Kantha - Minister of Agriculture, Livestock, Land and Irrigation
The Minister provided figures on paddy procurement, stating that 49,552 metric tons were purchased in the 2025 Yala season at a cost of Rs. 6,300 million, while 49,780.748 metric tons had been purchased in the 2025/26 Maha season by 19 March 2026 at a cost of Rs. 5,982.373 million, with a target of 80,000 metric tons. He said 2,978 metric tons had been released to SATOSA without loss, storage capacity was sufficient subject to renting warehouses where needed, and farmer protests concerned wet paddy, which the Paddy Marketing Board does not purchase. He explained that the Rs. 120 minimum procurement price for standard paddy includes production cost, drying cost, and a 26–30 per cent profit margin, and reported that storm-related crop losses would reduce the expected Maha harvest from 2.66 million to 2.58 million metric tons. He added that Maha and Yala production were expected to meet national rice needs overall, but Cabinet had approved a limited import of Samba/Keeri Samba substitute rice grades due to shortfalls in those varieties, with relevant annexes placed in the Library.
Verbatim record (translated)
Machine-translated from Sinhala / Tamil / English¶ 01 Question 1 asked the total paddy purchased in 2025 Yala and the expenditure.
¶ 02 Quantity purchased: 49,552 metric tons.
¶ 03 Expenditure: Rs. 6,300 million, provided in the Budget.
¶ 04 2. Release of stocks to market: 2,978 MT have been released to SATOSA for market release. No loss has been incurred.
¶ 05 3. 2025/26 Maha season: Targeted paddy purchases 80,000 MT.
¶ 06 Government has total storage capacity of 300,000 MT; currently 250,000 MT can be used. As at 19.03.2026, 96,354.7 MT are stored. If in some areas storage is insufficient due to higher farmer delivery to the Paddy Marketing Board, we will obtain warehouse space on rent.
¶ 07 4. As at 19.03.2026, actual purchases were 49,780.748 MT; expenditure Rs. 5,982.373 million. The variance between Government statistics and actual purchases is nil. Farmer protests relate to lower prices for wet paddy; the PMB purchases only standard paddy and prices align with the guaranteed and market prices.
¶ 08 5. The Government’s announced price is the Minimum Procurement Price (MPP) for standard paddy (14% moisture). For 2025/26 Maha, the formula used by the Department of Agriculture to compute the farmer’s actual cost and determine the MPP is:
¶ 09 - Cost of production (COP) per kg at harvest (22% moisture): Rs. 81.00 - Adjusting to 14% moisture: weight loss factor 1.12 - COP per kg at 14% moisture: 81.00 × 1.12 = Rs. 90.72 - Drying cost: Rs. 4.50 - Total COP per kg at 14% moisture: Rs. 95.22 - Adding profit margin 26–30%: Rs. 119.97 - Rounded MPP per kg: Rs. 120.00
¶ 10 Therefore, calling the price “concessional” implying no farmer profit misleads the public; up to 30% margin is included to protect both farmer and consumer.
¶ 11 6. Flood/cyclone impact (DoC “BOO” storm): Of 769,764 ha cultivated (as at 08.03.2026), 57,274 ha were fully destroyed; 33,576 ha were re‑cultivated. Estimated paddy loss 194,638 MT; re‑cultivation adds back 118,573 MT; net loss 79,064 MT. Expected Maha harvest 2.66 million MT; after adjustments 2.58 million MT.
¶ 12 7. National rice supply sufficiency: - 2025/26 Maha rice suffices until July (about 6.5 months: 1.53 million MT rice). - 2026 Yala expected rice: 1.32 million MT (about 5.6 months). - Combined Maha and Yala meet national needs (details in Annex 03).
¶ 13 Because Samba/Keeri Samba output is insufficient to meet steady demand, Cabinet approved import of substitute grades classified under HS 1006.30.29 (e.g., Ponni Samba and Keeri/Pal Ponni) with a fixed price framework, capped at 1,040 MT per importer, during 02.04.2026 to 30.04.2026, totaling 100,000–125,000 MT for market supply.
¶ 14 Annexes 01, 03, and 04 have been placed in the Library.
Provenance
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- Hansard, Tuesday, 5 May 2026 ·No. 23546 ·English daily/uncorrected Hansard
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Cite as: The Hon. K.D. Lal Kantha - Minister of Agriculture, Livestock, Land and Irrigation. 10th Parliament, Parliament of Sri Lanka. Hansard, 5 May 2026. No. 23546. Politick, https://staging.politick.io/lk/speeches/19820