President Ranil Wickramasinghe said that it is expected that the loan scheme of the International Monetary Fund will be implemented in March.
The president also said that he is considering reducing bank interest rates in relation to the gradual reduction of inflation.
The President mentioned this while attending a discussion held at the President’s Office yesterday afternoon (16) to find out about the problems faced by small and large scale rice mill owners and the steps to be taken to solve them.
The production cost of a kilo of rice has increased due to the increase in fuel prices, electricity charges, machinery maintenance costs, increase in transport costs and all other production and administrative costs.
The owners of rice mills pointed out that they will incur losses by selling their products at the current price of raw rice in the market compared to that production cost.
They also presented the difficulties faced by having to pay an interest rate of 28% on bank loans taken to buy seed paddy.
The cost of production of a kilo of rice has increased due to the rapid increase in the price of agricultural inputs.
It was also mentioned that the farmers have to pay high interest for the loans taken from the banks for cultivation.
Thus, due to the increase in the cost of production of the farmer as well as the cost of rice production of the rice mill owners, it has become difficult to maintain the rice industry and they also demanded that relief be given to them immediately with the intervention of the government.