• Rs. 3 b allocated for immediate insurance compensation
• Additional funds promised if allocation proves insufficient

The Government has commenced gathering information on farmers affected by the prevailing dry weather and the extent of crop damage across the country as it prepares to disburse compensation from an initial Rs. 3 billion allocation.

Deputy Minister of Agriculture and Livestock Namal Karunaratne told The Sunday Morning that agricultural authorities were currently collecting information on affected cultivation areas, the extent of crop losses, and the number of farmers who had suffered damage.

“Once that is done, compensation will definitely be given to everyone who suffered damages,” Karunaratne said.

He said that reports of crop damage were being received from several parts of the country amid the prevailing weather conditions, but a comprehensive assessment of the losses was yet to be completed.

“There are news reports from various places that crops are being damaged due to the El Niño condition. All relevant information is still being gathered. If farmers have suffered any cultivation damage, they will be compensated,” he said.

According to Karunaratne, the Government has allocated Rs. 3 billion for immediate insurance compensation for farmers whose crops have been affected.

Asked whether the allocation would be sufficient to cover all affected farmers, he said that additional funds would be provided if the compensation requirement exceeded the amount currently set aside. 

Meanwhile, the Government has introduced an interest-free concessionary financing scheme of up to Rs. 25 million for eligible rice mill owners and cooperative societies under the 2026 Yala season paddy purchasing programme.

The Government has allocated Rs. 7.5 billion for the scheme, which is intended to facilitate paddy purchases at guaranteed prices and prevent farmers from being forced to sell their produce at lower prices.

Karunaratne said that Parliament had approved a supplementary estimate to finance the Treasury-backed programme, under which eligible mill operators could obtain interest-free financing of up to Rs. 25 million.

“Allocating such a massive amount of money to mill owners on behalf of the farmer to sell paddy is happening for the first time in history,” he said.

According to the Deputy Minister, nearly 50 rice mill owners from Anuradhapura are already participating in the programme.

Registered small- and medium-scale rice mills with a maximum daily milling capacity of 25 MT, as well as cooperative societies operating mills with the same capacity, are eligible for the scheme.

“This is given only to those who meet those qualifications. They must be registered in our records,” Karunaratne said.

The Government is also dealing with storage constraints, with more than 100,000 MT of paddy from previous seasons remaining in warehouses.

Karunaratne said that alternative Government and private buildings were being used to store newly purchased paddy in areas where existing warehouses had reached capacity. “There are a few places with such issues, where warehouses are filled. In these places, we use separate Government buildings and private buildings to purchase paddy,” he said.

The guaranteed purchasing prices currently stand at Rs. 120 per kg for red and white nadu, Rs. 130 for samba, and Rs. 140 for keeri samba.