The Cabinet of Ministers has approved a minimum guaranteed price of Rs. 50 per 1kg of paddy, with a recommended moisture level, from the harvest of Maha season.
This was announced during the meeting held this morning (23) to announce the Cabinet decisions.
The government expects a total of 3 million metric tons of paddy from the harvest reaped during the Maha Season. As a principle, the government does not import paddy, hence, the prices of paddy has hiked moderately. The government says that this move has helped save an approximate amount of USD 100 million of foreign exchange. Owing to this, the exchange rate has stabilized while the interest rate has gone down, the government said.
Accordingly, the Cabinet of Ministers has decided that the government must intervene in purchasing surplus harvest of paddy from farmers with the intention of maintaining a stable price.
