Paddy produced in the Northern Province is transported to other provinces, processed into rice there, and then sold back in our own province. As a result, both our farmers and consumers are adversely affected. Steps will be taken to change this situation by strengthening private and cooperative sector mills so that our paddy can be processed into rice within our own province and distributed locally, stated the Hon. Governor of the Northern Province, N. Vethanayahan.
A special discussion with private and cooperative sector rice mill owners in the Northern Province, along with regional managers of state and private banks, was held this evening – on Friday 06 February 2026, at the Governor’s Secretariat.
Expressing his views during the discussion, the Governor further stated:
Paddy is produced in quantities exceeding the needs of our province. There is no issue in sending surplus paddy outside the province. However, it is not healthy to send even the paddy required for our people outside and then purchase the same as rice at a higher price. We are making efforts to provide adequate credit facilities to local rice mill owners so that paddy can be purchased through them and processed into rice here itself.
Rice mill owners pointed out that they require a substantial amount of cash during the period when farmers harvest paddy. However, there are delays in obtaining bank loans during this crucial period. Taking this into consideration, it was decided to establish a mechanism to ensure that bank loans are obtained on time, at least from the next cultivation season.
The lack of sufficient dryers for rice mills was identified as a major shortcoming. During the discussion, clarification was provided on the loan concessions that banks can offer for the purchase of dryers. In addition, it was decided to collect data on existing dryers and storage facilities in the Northern Province in order to plan for future requirements.
Since farmers harvest paddy before the proper maturity stage, rice mill owners face quality-related challenges. Therefore, it was emphasized that farmers should be educated on the benefits of harvesting paddy at full maturity, as well as on modern paddy cultivation methods.
The discussion was attended by the Northern Regional Manager of the Central Bank of Sri Lanka, regional managers of state and private banks, rice mill owners, and a group led by Dr. Akilan Kathirgamar, a member of the Governor’s Advisory Committee.
