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by Lalin Fernandopulle

The Ministry of Finance has allocated Rs. 2,248 million to buy paddy from farmers in the Anuradhapura and Polonnaruwa districts. The Treasury has released the money. The Government Agents and the Agricultural Development Board will purchase the stocks from farmers, Deputy Minister Finance Ranjith Siyambalapitiya said.

The Government decided to buy paddy in large quantities to help farmers to sell their stocks. Farmers in the Polonnaruwa district have not been able to sell the harvest due to the drop in prices.

The Deputy Minister said previous governments have been importing rice and selling it for lesser price without buying from our farmers. Various multinational organisations and businessmen were permitted to import rice without restriction. As a result the local farmer had to bear the brunt.

The government has introduced a loan scheme where businessmen could obtain a loan from a State or private bank at an interest of 7 per cent.

Though the banks charge an interest of 12 per cent the government will pay 5 per cent for the benefit of the borrower, Siyambalapitiya said.

All transactions will be done through the islandwide Government Agents. Consumers could buy rice from the co-operatives. The government has set aside Rs. 750 million to buy stocks from farmers in the Polonnaruwa district.

A further Rs. 3,000 million will be added to the government's paddy purchasing fund as an incentive to local farmers. This is in keeping with the vision of President Mahinda Rajapakse to encourage the farming community to improve their livelihood.

Siyambalapitiya said the agricultural sector has been neglected over the years with the focus being shifted to industrial development in the country. The government is committed to develop the agricultural sector and would do its best to support farmers who are considered kings performing a noble responsibility.

The Ministry of Agriculture plans to provide equipment and other machinery to farmers through a beneficiary scheme. The storage capacity will be increased with modern facilities.

The government plans to encourage people to consume more rice and food produced with rice flour than consuming imported food items.

The decision to increase the import tax from Rs. 9 to Rs. 20 per kilo on rice is to protect the local farmer and the market for his products.

He said the country reported an economic growth of 6.2 per cent at end 2005 and hopes to achieve 7.5 per cent by end 2007. The obstacle for economic growth is the escalating oil prices caused by the international market. The government has to fight the oil battle with the Ceylon Petroleum Corporation to ease the burden placed on the public.

The hike in fuel prices has caused immense difficulties to the public who have to grapple with a soaring cost of living.

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