The Cabinet has decided to increase the guaranteed purchase of a kilogram of Nadu to Rs 55 marking five rupee increase, Agriculture Minister Mahindananda Aluthgamage said.
The decision has been taken in the wake of protests by farmers that a recent decision by the government that paddy cannot be purchased for prices above Rs 50.
Accordingly, farmers have been protesting that they have been deprived of selling paddy at higher prices to the private sector who are willing to purchase them at Rs 60.
Meanwhile, the decision to increase the purchase price of paddy is likely to put pressure on the government which has put a fixed price on rice.
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