• Final decision on PMB purchasing rates expected soon
• Cost of production now estimated at Rs 137 per kg
• Govt wary of triggering another increase in rice prices 

The Government is weighing the option of increasing the prices at which the Paddy Marketing Board (PMB) purchases paddy during this year’s (2026) Yala cultivation season or adopting an alternative mechanism, amid concerns that an increase in procurement prices could prompt rice mill owners to push up retail rice prices.

Speaking on the current paddy purchasing programme in Parliament yesterday (24), Agriculture Minister K D Lal Kantha said the PMB has already begun purchasing paddy as harvesting for the Yala season gets underway. He noted the PMB purchased paddy from farmers during the previous Maha season at Rs 120 per kg for Nadu, Rs 130 for Samba, and Rs 140 for Keeri Samba.

In response to a question raised by Opposition Parliamentarian Shanakkiyan Rasamanickam, he acknowledged that cultivation costs have increased during the current Yala season. He said that harvesting costs have risen due to higher fuel prices, with land preparation expenses also having increased in recent times.

According to estimates prepared by the Hector Kobbekaduwa Agrarian Research and Training Institute, he said the cost of producing a kg of paddy is now around Rs 137.

However, he said that no final decision has yet been taken regarding a revision of PMB procurement prices. "We will make a decision in the coming days. We have to determine whether the PMB should increase the purchasing price of paddy or whether another form of relief should be provided to farmers," he said. He explained that a substantial increase in procurement prices could create unintended consequences in the rice market. "If we increase the purchasing price to around Rs 150 per kg, rice mill owners who bought paddy previously at prices between Rs 95 and Rs 100 may seek to increase rice prices. That would create a serious burden for consumers," he said.

However, he stressed that the Government is committed to ensuring that farmers receive a fair return that reflects their production costs and said that any decision would be guided by that policy objective.

Commenting on national rice production, Lal Kantha said the expected paddy harvest, after taking into account crop damage caused by cyclone Ditwah and subsequent replanting efforts, is estimated at 2.82 million metric tonnes (MT). He said that actual production could range from a minimum of 2.69 million MTs to a maximum of 2.94 million MTs. "Sri Lanka's annual rice requirement for 2026 is estimated at 2.8 million MTs, while expected domestic production is projected at around 2.85 million MTs. Based on domestic production forecasts and rice imports carried out up to March 2026, there is no indication of a rice shortage during 2026."

He added however that the availability of rice in the market could vary depending on the consumer demand for specific varieties, including Nadu, Samba and Keeri Samba.