• PMB moves to clear old stocks ahead of paddy purchases
• State releases paddy through Sathosa, fresh tenders
• Farmers threaten legal action over alleged procurement delays

The Government says it has begun clearing paddy stocks held by the Paddy Marketing Board (PMB) to free up storage space for the ongoing harvest, amid concerns that warehouses filled with old stocks are delaying purchases from farmers.

Speaking to The Sunday Morning, Ministry of Agriculture, Livestock, Land, and Irrigation Secretary D.P. Wickremasinghe said that around 20,000 MT of paddy held by the PMB had already been supplied to Lanka Sathosa for distribution.

“Tenders have been called to sell another 60,000 MT. Out of that, tenders for 40,000 MT have already been published and the remainder will be published within the week. The stocks will be released after evaluating the bids,” he said.

He added that the board was taking steps to expand storage capacity while gradually releasing existing stocks.

“We are repairing and expanding our storage facilities step by step. At the moment, we are operating at full capacity. We also have to ensure there are sufficient funds to purchase paddy from farmers,” Wickremasinghe said.

He noted that the PMB was selling stocks through competitive tenders and distributing paddy through Lanka Sathosa, adding that the board could not dispose of stocks at a loss because they had been purchased using public funds.

“We are also carrying out internal transfers between granaries to create additional storage space. There is still some time before harvesting begins in full in several areas, so we are trying to ease the pressure before then,” the official said.

The Government’s response comes after the National Agrarians’ Unity (NAU) alleged that delays in clearing PMB warehouses had prevented the timely purchase of newly harvested paddy.

NAU Chairman Anuradha Tennakoon claimed that harvesting under minor irrigation schemes was now peaking in the Eastern and Northern Provinces, including Trincomalee, Batticaloa, Mullaitivu, Mannar, and Vavuniya, while farmers were struggling to sell their harvest because PMB warehouses remained full.

“The PMB currently has around 120,000 MT of paddy in storage,” Tennakoon said.

He alleged that delays in disposing of existing stocks had slowed fresh procurement, noting that bids for a recently issued tender were scheduled to be opened on 8 July.

Tennakoon further claimed that the PMB intended to sell around 15,000 MT of paddy at approximately Rs. 100 per kilo despite purchasing it at Rs. 120 per kilo.

He alleged that, after accounting for handling and operational costs, the sale would result in a loss of around Rs. 370 million, while disposing of the entire 120,000 MT of stock could result in losses exceeding Rs. 3 billion.

Describing the situation as unprecedented, Tennakoon claimed that it would represent the highest percentage loss in the PMB’s 55-year history.

He also criticised the Government’s guaranteed paddy prices of Rs. 120 per kg for nadu, Rs. 130 for samba, and Rs. 140 for keeri samba, arguing that they did not reflect rising production costs, including fuel, fertiliser, and labour.

Warning of possible legal action, Tennakoon said that the NAU would invoke the Anti-Corruption Act No.9 of 2023 over what it alleged was the misuse of public funds if the Government failed to address the issue.

Meanwhile, the Ministry of Trade, Commerce, Food Security, and Cooperative Development said that it had launched measures to strengthen paddy procurement and improve post-harvest management.

Minister Wasantha Samarasinghe said that all PMB warehouses had been opened, while Lanka Sathosa and other State institutions had been instructed to accelerate paddy purchases to ensure farmers received fair prices.