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| Sunday, 31 August 2003 |
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Concessions for rice millers; stockists to restart operations by Hiran H. Senewiratne The Government, through the People's Bank and Bank of Ceylon, will re-schedule and reduce interest rates for loans taken by rice millers and stockists so that they can restart commercial operations to ensure a smooth supply of rice to the market. More than 5000 small, medium and large-scale rice mills and stockists are believed to be affected by the inability to pay interest on loans taken during the previous regime to purchase paddy from farmers. "We are in the process of finding a permanent solution to this matter in the interest of the paddy sector", said Minister of Rural Economy and Deputy Minister of Finance Bandula Gunawardena. He said after many discussions with District Rice Millers and Paddy Stockist Associations, the Government decided to re-schedule all loans and reduce the current bank interest to eight per cent so that rice mills including stockists can resume commercial operations. The Government had diverted its attention towards the matter in view of the present situation where rice cultivation is experiencing a big boom with a bumper paddy harvest, the Minister emphasised. Since such a harvest was recorded after many decades, it will affect the rice supply as well as the industry if the Government fails to address problems encountered by the industry, a leading rice miller said. Meanwhile, Senior Assistant Secretary to the Ministry of Agriculture S.V. Ariyaratne said the Treasury hopes to release five billion rupees in this regard. He said the money will be given to Government Agents to be disbursed among paddy millers and co-operatives in the country to restart operations. According to the Institute of Post Harvest Technology, about 5000 small, medium and large-scale rice mills are scattered throughout the country. Secretary to the Ministry of Industries Dr Upananda Vidanapathirana said the Ministry is exploring ways and means to improve productivity in most paddy mills, which is presently below expectation. He said the Ministry is currently working on introducing modern technology to paddy mills and stockists to improve the productivity level by using the Indian Line of Credit. However, President of the Rice Millers and Paddy Stockists Association, W.A.S. Luxman is requesting for a further four per cent reduction in interest rates and a 15-year repayment period to settle the debt, which has been outstanding for the last two to three years. He requested the Government to use the US$ 600 million loan given by the Asian Development Bank for poverty intervention projects to assist them. |
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