203-258...Despite all these difficulties the PMB has been able to purchase 70,771 metric tons of the island’s paddy harvest of the Maha season and 111,756 metric tons of the Yala

2010

PADDY MARKETING BOARD

ANNUAL REPORT2010

205

Established under ParliamentaryAct No. 14 of 1971

Report to be submitted to the Hon. Minister ofCo-operatives & Internal Trade Affairs related to

the implementation of powers, liabilities, functions,policies and programmes of the

Paddy Marketing Board for the year 2010,under the Section 31(1) of thePaddy Marketing Board Act.

207

MISSION

Implementation of a trading mechanismtowards the satisfaction of

agro-producer and consumer

VISION

To be the leading national institution inpurchasing and handling

Agro-based products

209

PADDY MARKETING BOARDANNUAL REPORT - 2009

Page

Aims and objectives of the Paddy Marketing Board 211

Dawn of the paddy field under Mahinda Chinthana 212

Report of the Director Board 213

Space for the Head Office 214

P.M.B. Organisation Structure 215

The staff recruited to the PMB in 2010 216

Standards used in the purchase of paddy in the year 2010 217

The amount granted by the Treasury to purchase paddy 218

Purchase of Paddy 219

Evolution of the Paddy Marketing Board 223

211

Aims and objectives of the Paddy Marketing Board

1. Purchase, sales and supply of grain products and maintaining distribution activities.

2. Motivation to keep up the quality of grain products.

3. Preparing and distribution of grain products for consumption.

4. Maintaining a buffer stock for food security.

5. Making arrangements to provide quality grain products to consumers at reasonable prices.

6. Enhancement of livelihood of farmers by providing assured prices for grain products.

212

Mahinda ChinthanayaMahinda ChinthanayaMahinda ChinthanayaMahinda ChinthanayaMahinda Chinthanaya

Dawn of the paddy field under Mahinda Chinthana

Purchase of paddy and storage.

The Paddy Marketing Board will be re-established in order to purchase paddy andmediate to the rice market.

The assured price of a kilo of Nadu variety will be increased up to Rs. 16.50 and a kiloof red variety up to Rs. 17.50 from the next ‘Maha’ season.

Under the programme of “re-cultivating the abandoned paddy lands”, special measureswill be implemented to upgrade the paddy cultivation in the wet zone by this programme,I will take steps to beef up the national rice security.

Mahinda Chinthana Forward Vision

A prosperous country with food security sans poverty

During the past 4 years, I have implemented an steady process to increase local foodproduction by re-establishing the Paddy Marketing Board, setting up economic centresin the major cities and empowering the institutions like ‘Sathosa’ and CooperativeMovement. As a result of this, income generating ways of the farming community havebeen expanding. This process should be carried forward continuously for steady decreaseof the inflation.

I am extremely happy that I have been able to increase the income levels of the farmingcommunity by giving them an assured price of Rs 28-30 for a kilo of their paddy harvest,which they were unable sell at least Rs. 13-14 a kilo earlier.

“His Excellency President Mahinda Rajapaksa”

213

Report of the Director Board

The Director Board of the P.M.B. at the beginning of year 2010 was comprised with the followingmembers.

1. Mr. K.B. Jayasinghe - Chairman - P.M.B The rest of the members appointed.2. Dr. Mrs. Damitha de Soyza - Director General (Development & Finance)

The Treasury – Ministry of Finance3. Mr. A.A. de Silva - President Councel4. Mr. Ravindra Hewavitharane - Commissioner General of Agrarian Development5. Mr. Lalith Senanayake - Chartered Accountant

The P.M.B. came under the purview of the Ministry of Co-operative and Internal Trade in May

2010. Accordingly, the Director Board of the P.M.B. changed.

Following members were appointed to the new Director Board.

1. K.B. Jayasinghe - Chairman – Paddy Marketing Board2. Mr. Ravindra Hewavitharane - Commissioner General of Agrarian Development

The Treasury – Ministry of Finance3. Mr. A.P.G. Kithsiri - Commissioner of Cooperative Development4. Mrs. N. Nimalka Dias - Commissioner of Food5. Mrs. M.T.I.V. Amarasekara - Assistant Director – State Entrepreneur Department6. Mr. M.K. Susantha - Director Board Member7. Mr. A.R.M. Haris - Director Board Member

The Director Board has held six meetings during the year 2010.

214

Space for the Head Office

Head Office of the PMB was set up in the Agriculture Ministry premises and has been shifted to theground floor of the Department of Food since September 2010. The official activities of the Boardhave to be carried out amidst immense difficulties due to lack of space in the office premises there.Despite all these difficulties the PMB has been able to purchase 70,771 metric tons of the island’spaddy harvest of the Maha season and 111,756 metric tons of the Yala season of that year.

As the Board urgently needed the service of an Accountant, Mr. W.M.K.B. Wasala was appointed tothe vacant post on contract basis till a permanent Accountant will be recruited according to the recruitmentprocedure. Mr. Wasala was appointed on the 06.09.2009 and terminated on the 30.07.2010. TheMr. S.B. Yatawara the Accountant of the Ministry was appointed to cover up the duties of the post, on01.08.2010 and his service was terminated on 16.01.2011. As he had to cover up duties of the PMBwhile working in the Ministry the financial activities of the Board could not be carried out systematicmanner.

Approved staff for the Paddy Marketing Board

The staff of the PMB approved by the Director General of the Management Service Department of theMinistry of Finance and policy planning, by the letter, no DMS/EL/14/4/389 dated 09.11.2010 inaccordance with the rules and regulations of the Management Services circular No 30, as follows.

Designation Salary No. of Approved No. of Scale Staff Staff Vacancies

Chairman 01 01 -General Manager HM 2-1-2006 01 01 -

D.G.M. (Finance) HM 1-1 -2006 01 01 -

D.G.M. (Operation) HM 1-1-2006 01 01 -

Accountant MM 1-1-2006 01 01 -

Legal Officer / Director Sec. MM 1-1-2006 01 01 -

Regional Manager MM 1-2-2006 06 07 01

Assistant Regional Manager MA 3-2006 59 60 01

Chairman, Private Assistant MA 2-1-2006A 01 01 -

Account Assistant MA 2-1-2006A 02 02 -

Management Assistant MA 1-1-2006A 16

Store Assistant MA 1-1-2006 19 44 09

Driver PL 3-2006 06 08 02

Office Work Assistant PL 3-2006 08 13 05

}

216

The staff recruited to the PMB in 2010

Assistant Regional Manager - 01 (Contract Basis)

Chairman Personal Assistant - 01

Driver - 03

Office Work Assistant - 04

Store Assistant - 01} Permanent Basis

217

Standards used in the purchase of paddy in the year 2010

1. Dampness (Maximum) :- 14%

2. Dirt :- 1%

3. Mixture of other varieties :- 6%

4. Immatured seeds :- 9%

5. Should be free of discoloured seeds.

6. Free of gravel, sand and dirt.

7. Should be free of damages by insects, insect eggs and other damages.

8. Should free of fungus infected seeds.

Thus, the paddy harvest prepared upto the above standards, was purchased by the PMB at the rateof Rs. 30/= a kilo of Samba variety at Rs.28/= a kilo of Nadu variety.

218

Paddy Marketing Board

The amount granted by the Treasury to purchase paddy.

Maha season 2009/ 2010

Date The amount granted

16.02.2010 300,000,000.00

01.04.2010 200,000,000.00

06.04.2010 200,000,000.00

21.04.2010 200,000,000.00

26.04.2010 150,000,000.00

07.05.2010 150,000,000.00

14.05.2010 100,000,000.00

Rs. 1,300,000,000.00

Accordingly, the Treasury has granted a sum of 1,300 million rupees to the PMB to purchase paddyharvests in the Maha season of 2009/2010.

219

Purchase of Paddy

Purchase of paddy was carried out successfully in the year 2010 as well as it has done in the year2009. The PMB purchased paddy harvests in both seasons in 2010. It has purchased a stock of70,601 metric tons of paddy in the Maha Season 2009/2010. The amount has increased up to 11,756metric tons in the Yala season in 2010. The government provide an assured price of Rs. 28 for a kilo ofNadu variety and Rs. 20 a kilo of Samba variety. The PMB has been able to achieve its basic objectivesby purchasing paddy harvests directly from the farmers.

Metric tons

Year 2008 2009 2010

Yala 5"746 13"374 111"756

Maha 38"000 70"771

Accordingly, the Board has paid a sum of 5,180 million rupees to farmers for purchase of 182,527metric tons of paddy in the year 2010.

A system was arranged in 2010 for the farmers to bring their paddy harvests directly to the warehousesto the PMB. In this process the farmers have been able to handover their paddy stocks independentlyto the PMB warehouses without being subjected to exploitation of a third party.

2008 2009 2010

120000

100000

80000

60000

40000

20000

0

Maha

Yala

220

Accordingly, the purchasing procedure can be displayed as follows.

Certificate of the Agricultureresearch officers’ of therelevant Agrarian servicezone

Paddy cultivatorTo certification

Payments are madefor the acceptedpaddy stocks Certified paddy

stocksare accepted up tothe standard

The selected branch ofthe bank

Wholesale storage ofthe PMB

Informing the amountof paddy stocksaccepted from thecultivaters

1. Following the establishment of the PMB under the Mahinda Chinthana Forward Vision a kilo ofpaddy produced by the local farmers was purchased at a rate of Rs. 28-30. The PMB has alsobeen able to maintain a buffer stock of l00,000 metric tons of paddy for catering local need of rice.

2. Private mill owners are instructed to develop then mills up to international standards to enhance thequality of rice produced by them. Measures are been taken to motivate the private sector toconquer foreign market.

221

The cost born by the government on the fertilizersubsidy for paddy cultivation

2005 - 2010

Year Cost born by thegovernment (Rs. Million)

2005 6,285.502006 10,696.302007 10,167.102008 24,382.702009 23,117.902010 22,344.50

Source- National Fertilizer Secretariat

The required amounts of fertilizer are issued to the farmers by the relevant Agrarian Services Centersunder the recommendations of the Department of Agriculture and the National Fertilizer Secretariat.When the subsidized prices are compared to the prices of fertilizer at the open market, the governmentprovides a subsidy of over 85 percent of the market price for a bag of 50 kilos.

Cost of fertilizer subsidy (Rs. Billions)

Cost of fertilizer subsidy (Rs. Billions)

30000

25000

20000

15000

10000

5000

0

Source- National Fertilizer Secretariat

2006 2007 2008 2009 2010

223

Evolution of the Paddy Marketing Board

As Sri Lanka became an independent country in 1948 from the British domination attention has beenfocused to buildup a local agricultural pattern in the island. As a result the governments were keen onpromoting paddy and other local food crops instead of the then prevailing plantation economy. Allgovernments those came in to power since the independence have taken steps to increase the paddyproduction as the rulers have realized the need to make the country self sufficient with rice. This wasdone basically in two ways. First is to increase the land extent used for paddy cultivation. The second isto increase the harvest obtained from the relevant land extent. The governments have also focusedattention to develop small, medium and large scale irrigation system in order to make this process asuccess. A number of irrigational systems have been set up in this regard. As a result of these measuresand the other relief services provided by the governments paddy production of Sri Lanka has increasedin a significant extent. Although, the paddy production decreased due to unavoidable natural causes insome seasons, when considering the statistics as a whole it is obvious that Sri Lanka is gradually becomingself sufficient with rice.

As more attention was focused to increase paddy production both by the government and the farmingcommunity, need for preparing a proper mechanism to sell paddy arose as well. After realizing this needthe government introduced a system of assured price for paddy to provide more reasonable price for thepaddy harvest produced by the Sri Lankan farmers. With the introduction of assured price system thegovernment has to mediate to the process of purchasing paddy. Accordingly, state sector departmentsentered in to purchase paddy in various aspects. As a result, the agrarian service department startedpurchasing paddy from the farmers. As there were certain shortcomings and weaknesses in thisdepartmental system, the need arose to carryout this in more efficient manner.

After the Samagi Peramuna Government came in to power in 1970 a systematic plans were drownedto increase the production of paddy and other local crops. At the beginning of the 1970s there was a foodshortage and price hike at the world market. Then Honorable Minister of Agriculture and Land HectorKobbekaduwa launched “Wagaa Sangramaya” (War of cultivation) under the guidance of then primeminister Honourable Mrs. Sirimavo Bandaranayake. Under this programme foundation was laid to setupan attractive marketing institute to purchase the products produced by the local farmers. Accordingly,steps have been taken to setup a state corporation to carryout purchase of paddy in more flexible andefficient manner than it was carried out by the agrarian service department. The draft bill of paddymarketing board was submitted to the House of Representatives in November 1970 after its approval,the bill was submitted to the Senate in December in the same year. The bill was approved by the senatein March 1971 and the Paddy Marketing Board was established from 29th March 1971 under the PaddyMarketing Board Act No.14 1971.

Service and field structure of the Paddy Marketing BoardThe government’s objectives of establishing the Paddy Marketing Board were to purchase paddy

from the farmers under the assured price system as a measure to enhance the economic condition of thefarmers and to create a market opportunity for the consumers to purchase rice at more reasonableprices. Accordingly, the Paddy Marketing Board’s major services were to

a) To carryout the business of purchasing, selling, supplying and distribution of paddy and rice.

b) To carryout the businesses of milling paddy and polishing and preparing rice.

To achieve these services the Paddy Marketing Board started acquiring the warehouses owned bythe Agrarian Services Department in 1971. The Board also started purchase of paddy from the year1972. A decision was taken to setup an islandwide organization under regional basis to carryout paddypurchase, storage and all other relevant activities. Accordingly, steps were taken to setup 12 regionaloffices covering all districts. Each regional office was setup by considering the amount of paddy harvest

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available for purchase in the relevant area and the amount of tasks entrusted to each office. Activities ofeach region were carried out under the surveillance of a regional superintendent. The headquarterslocated in Colombo carried out all coordinating work.

Purchase of paddy

Right from the beginning the PMB has taken steps to purchase the surplus paddy produced in SriLanka and to keep the economy of the farming community at stable level. The PMB had the monopolyof purchasing paddy from 1971 to 1977. The board had been able to purchase 25 percent of the paddyproduction in Sri Lanka during that period.

At the beginning cooperative outlets have been appointed as dealers to the PMB. Later, in addition tothe cooperative outlets agrarian services committees and private dealers have been appointed aspurchasing dealers. However, the PMB has gradually taken measures to purchase paddy directly fromthe farmers in order to rectify the shortcomings of the prevailing agent system.

Storing of purchased paddy

As the PMB acquired paddy purchasing activities from the agrarian service department in 1971 allthe warehouses owned by the Department were acquired by the PMB as well. However, the number ofwarehouses was not adequate to store the entire amount of paddy purchased by the board. Therefore, anumber of new warehouses have been setup under foreign aid. Accordingly, the Board had been able tostore the surplus stocks of paddy and release them to the market when necessary. At the golden era ofthe Board it has been able to store a capacity of 431,005 metric tons of paddy. Officials of the PMB hadbeen given the required technical know-how and training to keep the purchased paddy at high standard.Accordingly, the board gathered paddy stocks and release paddy and rice systematically to the marketwhen necessary.

Milling paddy and issue of rice

Rice mills owned by the PMB and private sector mills had been used to mill the stored paddy in torice. Several new rice mills had also been setup under foreign aid and used to produce rice. At thebeginning the required rice stocks were released to the Department of Food to be issued to the consumersunder the coupon system. Following the end of coupon system the board had to issue rice for the openmarket for sale.

Training and research activities

Right from the beginning the board carried out research work for conservation of stored paddy. Theneed arisen to keep the paddy stocks at proper technical standards. Accordingly, the Rice Production,Research and Development Centre was officially opened in Anuradhapura in June 1976 under thepatronage of World Food and Agricultural Organization and the UN Food Programme. Basic task of thisresearch centre was to carryout research minimize post harvest wastage. This was the first such researchcentre established in the South Asian region for this purpose. This research centre has fulfilled the needsof all training requirements of the post harvest operations and the paddy and rice industry.

The PMB has contributed in many aspects to keep the economic conditions of farming community ata stable level during the past 40 years since its initiation. At the beginning of the PBM the assured pricepaid to farmers for one kilogram of paddy was at 72 cents. As the amount seemed to be not adequate,the price has been gradually increased several times. At present the price is at 28 rupees a kilo. Thus, theBoard has attempted to increase the livelihood of the farming community by increasing the assured pricefor the paddy and at the same time it has contributed a lot to enhance the paddy production.

Under the open economy policy since 1977 competitive prices were active for paddy and rice at theopen market. At this juncture the PMB did not directly enter in to the market competition. However, itwas active with safety steps taken to keep the assured price of paddy at stable level. Keeping the pricestable was a grate service rendered by the board to keep the economic conditions of the farming community

225

at the stable level. During this period paddy production in Sri Lanka fluctuated due to climatic andvarious natural causes. The Board has purchased ample stocks in the seasons that produced bumperharvests. In some seasons the board has purchased a less amount of paddy stocks due to decrease ofproduction in the country owing to various reasons. However, the Paddy Marketing Board has won theconfidence of the farming community by keeping the assured price of paddy at stable level and providingbetter market opportunities for the farmers to sell their harvest. In addition to purchase of paddy thePMB has declared assured prices for maize, soya bean, peanuts and some other additional crops andpurchased the harvests from the farmers. The Board has also encouraged the farming community tocultivate and produce many types of crops. In certain times the Board had to bear financial losses inproviding services to the farmers.

As a state own business the PMB had to face many challenges in implementing contradictory services.It has to maintain the government’s assured price system in order to protect the cultivators at the sametime it had to safeguard the consumers. In this process the board faced many financial hardships as well.Under the open economic policy the then government started privatizing the state enterprises. Accordingly,re-structuring the Paddy Marketing Board was started at the end of the 1980s. Under this processservice of the 3,200 employees was terminated by paying compensations. None operated paddy millsand 375 warehouses were declared dilapidated and auctioned and some of them were given to otherinstitutions on lease. By the beginning of the 90s the Paddy Marketing Board was closed down. By theyear 1996 purchase of paddy and marketing was given to CWE. Meanwhile, a proposal was submittedin the parliament to dissolve the Paddy Marketing Board which was established under the PMB actNo.14 - 1971. However, Majority of parliamentarians opposed this move and the PMB existed as aninactive institution. In the year 2006 a new institution was setup under the name of Sri Lanka AgriProducts Marketing Authority and it was entrusted with carrying out paddy purchase. This authoritywas functioned under the company ordinance.

Re-establishment of the Paddy Marketing Board.

Mahinda Chinthanaya “Kethata Aruna”

According to a pledge made by His Excellency the President under the Mahinda Chinthana Policymanifesto in 2005 the Paddy Marketing Board was re-established. It started purchase of paddy by theyear 2008. The government has realized that the Board should be further modernized under newprogramme. Leaving the paddy and rice market totally free from the state entrepreneurship is notconducive for the country. There should be a state sector institute responsible for the protection of foodsecurity in the island. It is not conducive for the people to act with the aims of profit making andcommercializing policy. Considering all these facts plans are now being drowned to face the futurechallenges in this field.

Therefore, the government is in the opinion to re-vitalize the activities of the Paddy Marketing Board.The Board should work to develop post harvest grain technology and to expand the paddy, rice and otherfood crops industries. At present new machinery and equipments are used in harvesting this large scaleharvesting systems has caused low quality of harvests. Unlike the traditional harvesting systems themassive harvesting by machines leads to large scale wastage and decreasing quality standards. Forexample, post harvest wastage of paddy cultivation at present is about 10 to 15 percent. Sri Lanka’sannual paddy production is grossly 2.8 million metric tons and the gross annual wastage is 420,000 metrictons. The huge wastage causes heavy loss to the income of the farming community. Therefore, it isessential to prepare a proper plan to develop post harvest grain technology at national level.

During the past 4 years after re-establishment of the Paddy Marketing Board, various services havebeen carried out by the Board to enhance the economic condition of the farming community. At the re-establishment of the PMB the assured price of a kilo of paddy was at 15 rupees. His Excellency thePresident has realized that this amount is not adequate and ordered to increase the amount severaltimes. At present the price of a kilo of paddy is 28 rupees. Thus the PMB has contributed a lot to

226

increase the economic strength of the farming community and at the same time it has contributed toincrease the paddy production in the island. Under the open economic policy started at the end of the1970s private sector entered in to the paddy and rice market in a massive scale. Therefore, a competitiveprice was active in the market during influx period of harvesting. At that time PMB was not directlyinvolved in the competition. However, it had taken safety measures to prevent the prices decreasingbelow the assured price level. This way the Paddy Marketing Board rendered a great service to keepthe economic condition of the farming community stable. Paddy production in Sri Lanka was subjectedto fluctuations due to many climatic and natural causes. In line with these changes purchase of paddywas also fluctuated. However, the PMB was able to keep the prices at the market higher than theassured price level all the time. This mediation of the Board has created confidence among the farmingcommunity for having stable market for their products.

In addition to purchase of paddy the PMB has declared assured prices for maize, soya bean, peanutsand some other additional crops and purchased the harvests from the farmers. The Board has alsoencouraged the farming community to cultivate and produce many types of crops. In certain times theBoard had to bear financial losses in providing services to the farmers.

Future expectations

Renovation of all existing warehouses

Constructing new warehouses for the places where storing facilities are needed.

Setting up new rice producing centers with modern technology and machinery in each region.

Challenges faced by the institution

The PMB has to face many challenges in providing relief to the contradictory two sectors namelycultivators and the consumers. It has to maintain the government’s assured price system to safeguardthe cultivator and at the same time it has to provide concessions to the consumer. The Board facessevere financial hardships as well.

With the approval of Government Treasury the Board obtained loans from all state banks to purchasepaddy from the farmers at the assured price. The board also maintains a buffer stock for food safety. Ithas to provide rice to Sathosa outlets at lower rates to cater to the needs of the consumers. In thisprocess the Board has be bear some additional cost. Lack of rice producing centers is also a challenge.The loss occurred due to long time storage and lack of adequate and quantity warehouses are alsocauses for wastage which is a challenge for the board.

Observation

Before the nullifying of the PMB there were about 3,200 employees. After re-establishment in2008 about 126 employees have been recruited to carryout the services of the board. The Board faceda massive challenge of achieving the task of paddy purchasing at productive and efficient manner withthe present staff. However, the present staff rendered a praising service to the board to make the paddypurchasing process a success.

Conclusion

Steady measures were taken to develop Sri Lanka as an agriculture based country only after theyear 2005. Implementation of the active programme of “Api Wawamu – Rata Nagamu” and the re-establishment of the Paddy Marketing Board are the two major steps in this regard. It has been stressedthat the Paddy Marketing Board should be an independent body which may not cause a burden to thegovernment treasury. It should be maintained as an institution that can achieve the government’s objectivesand to provide a satisfactory service to farmers.

227

I appreciate the support extended by the Ministry of Finance, Attorney Generals Department,Department of Agriculture, Department of Agrarian Services, Department of Cooperatives, Departmentof Food, Sathosa, Lak Sathosa, District Secretaries, Sri Lanka Mahaweli Authority, Peoples Bank, Bankof Ceylon, National Savings Bank, Regional Development Bank and other brotherly institutions.

The Paddy Marketing Board came under purview of the ministry of Cooperatives and InternalTrade in the year 2010 and achieved a significant progress in paddy purchasing under HonourableMinister Johnston Fernando. In addition paddy stocks owned by the Paddy Marketing Board were milledin to rice by the private mill owners and the rice stocks have been given to the department of food andLak Sathosa Outlets.

I respectfully recall the service provided by the Secretary, Additional Secretaries and the entirestaff of the Ministry of Cooperatives and Internal Trade to achieve this task. I also express my gratitudeto the members of the Director Board who encouraged us to achieve the aims and objectives of theboard and entire staff including the General Manager who are committed to the well being of the PaddyMarketing Board. My special thanks should also go to the regional managers and staff of the regionaloffices who actively contributed a great service to the Paddy Marketing Board by Carrying out paddypurchases during both seasons.

K. B. Jayasinghe

Chairman


Annex

1. Paddy purchasing programme of 2009 / 2010 Maha season and 2010 Yala season.

2. Progress of paddy purchase of 2009 / 2010 Maha season and 2010 Yala season.

3. Paddy purchase in 2009 / 2010 Maha season and 2010 Yala season as per regions.

4. Data record of the cultivated lands in the 2009 / 2010 Maha season issued by the Departmentof Census and statistics.

5. Data record of the cultivated lands in the 2010 Yala season issued by the Department ofCensus and statistics.

6. Evolution of the assured price of paddy 1948 to 2010.

7. Warehouses owned by the Paddy Marketing Board.

8. Varieties of paddy suitable for high yield.

9. Popular varieties of rice.

10. Factors of converting weighing and measuring.

228

Paddy purchasing programme of 2009 / 2010 Maha season


Region Expected purchase Expected cost (Rs. Millions)(Mt. Tons) for paddy purchase

at the proposed price (Rs. 29)

Polonnaruwa 50,000 1,450

Anuradhapura 30,000 870

East 30,000 870

South 15,000 435

Northwest 15,000 435

Total 140,000 4,060

Paddy purchasing programme of 2010 Yala seasonPaddy Marketing Board

Region Expected purchase Expected cost (Rs. Millions)(Mt. Tons) for paddy purchase

at the proposed price (Rs. 29)

Polonnaruwa 25,000 725Anuradhapura 20,000 580East 25,000 725South 15,000 435Northwest 10,000 290Kilinochchi 5,000 145Total 100,000 2,900

Annex 01

231

Annex 03

Paddy Marketing BoardPolonnaruwa region

2009/10 Maha Season - Paddy Purchasing Programme

Quantity is given in Kilogrammes

District Store Nadu Samba Total

Polonnaruwa Jayasiripura 20,450 92,150 112,6009th Post 746,395 87,890 834,285Pansal Godella 1,067,220 18,750 1,085,970Medirigiriya 1,162,220 84,840 1,247,060Kaduruwela 2,293,110 76,000 2,369,110Abhayapura 727,050 28,150 755,200Nikawathalanda 105,000 71,450 176,450Ambagaswewa 821,035 64,887 885,922Veheragala 178,550 24,750 203,300Girandurukotte 1,101,800 38,750 1,140,550Nuwaragala 241,240 27,950 269,190Diyaviddagama 154,500 2,300 156,800Welikanda 817,753 172,335 990,088Sandagalathenna 162,980 28,800 191,780Jayanthipura 631,800 30,250 662,050Diyabeduma 231,750 771,850 1,003,600Siripura 213,092 23,880 236,9722Madudamana 14,650 9,900 4,550Divuldamana 3,650 800 4,450Bakamuna 335,500 252,550 588,050Sevanapitiya 130,700 144,850 275,550Maithreegama 85,500 41,250 126,750Muwagammana 221,500 18,000 239,500Lihiniyagama 74,900 7,400 82,300Bihiri Sorowwa 116,260 44,060 160,320Thalpotha 714,343 31,626 745,969Lihiniyagama 62,000 10,700 72,700Meewathpura 228,760 6,850 235,610Kaduruwela - 1 328,140 14,300 342,440Manampitiya 1,332,000 213,596 1,545,596VijayabapuraV 524,890 152,850 677,740eerapura 1,296,720 91,810 1,388,530Vijayapura 914,359 123,870 1,038,229Mudunkadawala 46,100 7,450 53,550Damminna 113,850 19,150 133,000Aluthoya 58,400 28,850 87,250Rathkinda 21,550 0 21,550Medagama 147,050 4,500 151,550Selasumgama 119,400 41,700 161,100Ridee Ela 166,500 28,750 195,250Sathosa 1 2,855,300 117,050 2,972,350Bakmideniya 217,100 36,350 253,450Kalukele 38,750 4,750 43,500Dimbulana 74,520 5,720 80,240

232

Dimbulagala 21,350 6,500 27,850Ellewewa 37,890 4,400 42,290Maldeniya 134,340 43,980 178,320Sinhapura 100,440 19,090 119,530Kusumpokuna 983,050 27,700 1,010,750Kandaketiya 12,250 4,600 16,850Viranagama 157,800 14,150 171,950Mawanawela 390,900 92,240 483,140

Trincomalee Kanthale 53,250 47,000 100,250Kanthale 02 482,290 5,150 487,440

Matale Hettipola 943,250 119,000 1,062,250Handungamuwa 560,200 14,100 574,300

Badulla Mahiyanganaya 1,000 0 1,000

Total 24,796,347 3,501,574 28,297,921

Paddy Marketing BoardAnuradhapura region




Anuradhapuraya Vahalkada 234,606 0 234,606Thambuththegama 266,148 41,223 307,371Rajanganaya 366,299 83,535 449,834Bulnewa 868,755 128,208 996,963Kahatagasdigiliya 1,003,932 29,610 1,033,542Nochchiyagama 689,442 86,639 776,081Yakalla 1,087,935 75,399 1,163,334Horowpathana 1,104,812 16,710 1,121,522Senanayake 37,723 22,850 60,573Thalawa 340,176 69,014 409,190Kekirawa 231,272 16,788 248,060Rambewa 868,156 77,570 945,726Katiyawa 341,967 15,054 357,021Negama 38,310 941 39,251Padavi Sripura 580,647 111,888 692,535Sravastipura 570,445 19,201 589,646Medavachchiya 106,200 0 106,200

Matale Pelvehera 950 66,794 67,744

Trincomalee Kandalama 2,960 17,388 20,348Gomarankadawala 625,335 110,450 735,785

Kilinochchiya Kilinochchiya 651,485 17,385 668,870

Total 10,017,554 1,006,647 11,024,201

233

Paddy Marketing BoardNorth-western region




Kurunegala Nikaveratiya 2 254,385 15,915 270,300Rajanganaya 681,500 36,350 717,850Meegalewa 425,560 5,710 431,270

Puttalam Thabbowa 341,900 24,950 366,850Anamaduwa 24,170 40,715 64,885

Total 1,727,515 123,640 1,851,155


South Region2009/10 Maha Season - Paddy Purchasing Programme



Hambantota Weerawila 901,403 0 901,403Dehiganalanda 274,378 5,826 280,204Kachchigalara 726,058 4,68 730,740Pannegamuwa 648,624 29,545 658,169Suriyawewa 680,884 0 680,884Kahandawa 299,882 7,773 307,655

Monaragala Muthukandiya 689,462 266,654 956,116Ethimale 394,392 44,982 439,374Okkampitiya 322,173 0 322,173Buttala 150,175 2,400 152,575Hulandawa 1,577,003 9,038 1,586,041

Rathnapura Kuttigala 462,284 628 462,912Kaltota 21,630 0 21,630

Total 7,148,348 351,528 7,499,876

234


East Region2009/10 Maha Season - Paddy Purchasing Programme



Ampara Damana 1,559,150 207,650 1,766,800Ampara 01 1,615,870 108,260 1,724,130Walagamputa 236,900 46,950 283,850Kohombana 707,017 8,437 715,454Kohombana 01 530,303 58,280 588,583Mahaoya 02 1,146,850 43,550 1,190,400Komariya 2,099,840 199,220 2,299,060Weeragoda 1,322,575 293,670 1,616,245Palamkandaura 1,476,130 67,234 1,543,364Palamkandaura 02 248,000 7,850 255,850Samanthurai 1,039,583 600 1,040,183Addalachchena 586,080 0 586,080Pothuwil 1,356,252 197,558 1,553,810Inginiyagala 579,260 31,755 611,015Nellikelle 1,086,416 205,641 1,292,057Gonagolla 890,153 71,314 961,467Food department 1,007,900 4,700 1,012,600

Badulla Mahiyanganaya 612,050 88,350 700,400Medayaya 142,592 37,691 180,283Karametiya 287,650 52,950 340,600

Kandy Pallewatta 344,833 26,791 371,624Morayaya 194,475 48,189 242,664

Batticaloa Vavunathive 213,342 0 213,342Valachchena 885,152 123,340 1,008,492

Total 20,168,373 1,929,980 22,098,353


Polonnaruwa Region2010 Yala Season - Paddy Purchasing Programme



Polonnaruwa Ulpathwava 56,575.00 18,450.00 75,025.00Kalingawila 51,950.00 120,500.00 172,450.00Medagampitiya 75,350.00 177,300.00 252,650.00Medirigiriya 337,050.00 85,250.00 422,300.00Kaduruwela food stores 246,950.00 199,775.00 446,725.00Abhayapura 752,500.00 247,500.00 1,000,000.00Kaduruwela 03 1,426,650.00 1,000,400.00 2,427,050.00Ambagaswewa 1,198,999.00 293,019.00 1,492,018.00

235

Chandanagama 46,600.00 127,600.00 174,200.00Mawanawala 27,100.00 64,100.00 91,200.00Penapura 192,330.00 581,450.00 773,780.0003 Yaya Storage 02 111,300.00 590,250.00 701,550.00Welikanda 794,295.00 882,065.00 1,676,360.00Welikanda 03 370,980.00 1,292,640.00 1,663,620.00Lathpandura 126,650.00 207,750.00 334,400.00Jayanthipura 1,216,750.00 295,500.00 1,512,250.00Diyabeduma 914,050.00 783,750.00 1,697,800.00Nikawathalanda 86,300.00 349,000.00 435,300.00Dimbulagala 02 33,200.00 85,250.00 118,450.00Giripokuna 19,850.00 165,050.00 184,900.00Sooriya Pokuna 84,500.00 79,300.00 163,800.00Damminna 69,600.00 44,450.00 114,050.00Bihiri Sorowwa 38,000.00 35,450.00 73,450.00Thalpotha 02 1,211,050.00 313,500.00 1,524,550.00Damanewewa 143,450.00 132,600.00 276,050.00Manampitiya 301,560.00 667,630.00 969,190.00Kudagala 46,250.00 136,850.00 183,100.00Nawagahaela 147,000.00 94,500.00 241,500.00Kurulubedda 72,750.00 90,350.00 163,100.00GinnoruwaIhala 164,850.00 93,150.00 258,000.00Yakkure 78,050.00 137,350.00 215,400.00Divulapelessa 99,600.00 170,300.00 269,900.00Muwapetigewela 38,850.00 173,050.00 211,900.00Pussellawinna 8,000.00 13,200.00 21,200.00Rathkinda 2,900.00 6,600.00 9,500.00Medagama 87,250.00 162,500.00 249,750.00Susirigama 32,210.00 5,000.00 37,210.00Sathosa 02 1,709,410.00 727,500.00 2,436,910.00Sathosa 03 177,150.00 391,200.00 568,350.00Kekuluwela 48,450.00 78,800.00 127,250.00Theldeniyaya 33,800.00 123,450.00 157,250.00Samanalathenna 38,250.00 202,700.00 240,950.00Girandurukotte 136,850.00 177,900.00 314,750.00Hinguraggoda, Co-op 35,350.00 750.00 36,100.00Divulapitiya 158,040.00 27,170.00 185,210.00Kusumpokuna 24,300.00 0.00 24,300.00Dehiattakandiya 148,900.00 179,550.00 328,450.00Yaya 03 Aralaganwila 325,500.00 283,900.00 609,400.00ZD storage 73,600.00 182,080.00 255,680.00

Trincomalee Kanthale 01 599,150.00 30,300.00 629,450.00Kanthale 02 564,450.00 12,150.00 576,600.00Kanthale 03 564,450.00 12,150.00 576,600.00Kanthale 04 894,000.00 84,400.00 978,400.00Waragala 141,500.00 114,750.00 256,250.00Lihiniyagama 70,700.00 83,650.00 159,050.00Wijayaputa-Lihiniyagama 58,400.00 200,650.00 259,050.00Wijayaputa 488,695.00 194,551.00 683,246.00Seruwila Kallar 450,700.00 97,300.00 548,00000

Matale Hettipola 2,430,550.00 419,850.00 2,850,400.00

Total 19,883,494.00 13,547,130.00 33,430,624.00

236


Eastern Region2010 Yala Season - Paddy Purchasing Programme



Ampara Komariya 438,000.00 181,450.00 619,450.00Damana (open) 405,300.00 145,550.00 550,850.00Nellikele 157,160.00 73,970.00 231,130.00Sathosa 671,922.00 30,234.00 702,156.00Galwanguwa 111,700.00 0.00 111,700.00Keenawatte 178,100.00 10,700.00 188,800.00Kohombana 01 266,264.00 25,256.00 291,520.00Kohombana temp. 185,820.00 74,900.00 260,720.00Kohombana Open 386,798.00 40,924.00 427,722.00Gonagolla 561,660.00 42,433.00 604,093.00Mahaoya 238,415.00 4,690.00 243,105.00Morayaya 323,883.00 158,704.00 482,587.00Thissapura 296,400.00 189,050.00 485,450.00Palamkandaura 03 511,955.00 128,715.00 640,670.00Sammanthurai 1,085,810.00 0.00 1,085,810.00Addalachchena 656,880.00 5,000.00 661,880.00Addalachchena 01 200,800.00 0.00 200,800.0015 Palama 125,700.00 50,000.00 75,700.00Gonagala 543,800.00 11,150.00 554,950.00Food Department 02 3,324,579.00 191,570.00 3,516,149.00Food Department 03 2,328,807.00 805,305.00 3,134,112.00Mahanagapura 204,250.00 0.00 204,250.00Hall Junction 787,700.00 176,200.004 963,900.00Rajagalathenna 453,800.00 7,300.00 501,100.00Galmaduwa 122,950.00 35,800.00 158,750.00Palamunai 558,500.00 0.00 558,500.00Namaloya 229,720.00 13,258.00 242,978.00Lahugala 430,157.00 19,091.00 449,248.00Grama 02 102,150.00 25,000.00 127,150.00Uksiripura 176,850.00 169,590.00 346,440.00Pahala Landa 689,410.00 170,100.00 859,510.00Nelumkele 964,550.00 32,450.00 997,000.00Saindamarudu 443,400.00 41,650.00 485,050.002 mile post 465,700.00 101,700.00 567,400.00Mahakele 81,700.00 21,950.00 103,650.00Porawelthalawa 72,850.00 14,600.00 87,450.00World Food Association 791,950.00 72,350.00 864,300.00Muwagala 64,750.00 206,900.00 271,650.00Delankawala 142,300.00 59,000.00 201,300.00Panama 64,503.00 0.00 64,503.00Mobile (Weyangoda) Mr. Liyanage 63,500.00 0.00 63,500.00Mobile (Weyangoda) Mr. Anura 23,200.00 0.00 23,200.00Mobile (Weyangoda) Mr. Priyantha 0.00 80,250.00 80,250.00Mobile (Weyangoda) Mr. Arunathilake 178,060.00 12,380.00 190,440.00Mobile (Weyangoda) Mr. Senarathne 84,643.00 0.00 84,643.00Mobile (Weyangoda) Mr. Rohana 195,434.00 0.00 195,434.00Mobile (Weyangoda) Mr. Sudubanada 93,450.00 0.00 93,450.00Mobile (Weyangoda) Mr. Weerakkody 46,878.00 0.00 46,878.00

237

Mobile (Weyangoda) Mr. Chaminda 99,200.00 52,700.00 151,900.00Mobile (Pallewatte) Mr. Priyantha 250,368.00 29,648.00 280,016.00Mobile (Pallewatte) Mr. Tharaka 28,250.00 0.00 28,250.00Mobile (Pallewatte) Mr. Senarathne 155,950.00 440.00 156,390.00Mobile (Pallewatte) Mr. Arunathilake 34,350.00 17,440.00 51,790.00Mobile (Pallewatte) Mr. Weerakkody 174,060.00 16,150.00 190,121.00Mobile (Pallewatte) Mr. Rohana 163,931.00 23,114.00 187,045.00Mobile (Pallewatte) Mr. Sirajun 196,062.00 3,012.00 199,074.00Mobile (Pallewatte) Mr. A.P Kumara 98,549.00 12,921.00 111,470.00Mobile (Pallewatte) Mr. Shantha 73,350.00 12,850.00 86,200.00Mobile (Pallewatte) Mr. Susantha 6,850.00 7,050.00 13,900.00Mobile (Sathosa) Mr. Rohana 96,900.00 5,050.00 101,950.00Mobile (Sathosa) Mr. Arunathilake 16,751.00 0.00 16,751.00Mobile (Ampara) Mr. Priyantha 47,700.00 11,350.00 59,050.00Mobile (Ampara) Mr.Chaminda 14,086.00 2,320.00 16,406.00Mobile (Ampara) Mr. Senarathne 15,200.00 0.00 15,200.00Mobile (Ampara) Mr. Rohana 30,400.00 0.00 30,400.00Mobile (Mahiyangana) Mr. Senarathne 32,774.00 10,807.00 43,581.00Open pyramid Mr. Arunathilake 98,725.00 23,050.00 121,775.00Mobile (Mahiyangana) Mr. Rohana 90,050.00 0.00 90,050.00Mobile (Mahiyangana) Mr. Priyantha 65,680.00 6,579.00 72,259.00Mobile (Mahi.) Mr. Weerakkody 71,350.00 4,650.00 76,000.00Mobile (Mahiyangana) Mr. Chaminda 36,103.00 43,954.00 80,057.00Mobile (Mahiyangana) Mr. Sudu Banda 15,000.00 0.00 15,000.00Mobile (Mahiyangana) Mr. Sirajun 15,300.00 0.00 15,300.00Mobile (Mahiyangana) Mr. Daminda 24,800.00 0.00 24,800.00Thimbirigolla 385,000.00 71,050.00 456,050.00

366,235.00 1,500.00 367,735.00

Badullla Mahiyanganaya 458,000.00 275,300.00 733,300.00Medayaya 353,865.00 172,793.00 526,658.00

Kandy Karametiya 585,940.00 96,020.00 681,960.00Pallewatte 446,411.00 123,042.00 569,453.00Kolongoda Co-op 53,421.00 62,200.00 115,621.00Kolongoda 01 207,355.00 57,516.00 264,871.00

Total 26,201,924.00 4,721,476.00 30,923,400.00

238





Anuradhapura Wahalkada 445,919.00 3,000.00 448,919.00Thambuttegama 570,057.00 53,974.00 624,031.00Rajanganaya 485,865.00 25,333.00 511,198.00Bulnewa 1,352,422.00 102,425.00 1,454,847.00Padavi Parakramapura 101,490.75 59,073.25 160,564.00Kandalama 30,829.00 5,800.00 36,629.00Nochchiyagama 793,424.00 52,112.00 845,536.00Wilachchiya 164,782.00 17,263.00 182,045.00Horowpathana 100,488.00 24,100.00 124,588.00Senanayake 249,250.00 51,100.00 300,350.00Thalawa 408,716.00 81,000.00 489,716.00Kekirawa 883,861.00 24,672.00 908,533.00Senapura 65,258.00 5,000.00 70,258.00Rambewa 105,745.00 5,425.00 111,170.00Katiyawa 509,607.00 85,189.00 594,796.00Swarnajayanthiputa 40,150.00 25,250.00 65,400.00Negama 961,531.00 31,597.00 993,128.00Shrawasthipura 129,759.00 3,760.00 133,519.00Mamaduwa 343,440.00 14,940.00 358,380.00Mahadivulwewa 01 87,750.00 32,650.00 120,400.00Mahadivulwewa 02 137,300.00 9,850.00 147,150.00Eppawala 390,151.00 64,874.00 455,025.00Pahala Halmillewa 419,130.00 36,024.00 455,154.00Morawewa 62,874.00 62,700.00 125,574.00Pelwehera 6,800.00 2,300.00 9,100.00

Matale Galenbinduwewa 211,408.00 10,462.00 221,870.00Kalkiriyagama 360,899.00 1,700.00 362,599.00

Trincomalee Gomarankadawala 310,999.00 97,422.00 408,421.00Shanthipuram 255,252.00 82,667.00 337,919.00

Kilinochchiya Kilinochchiya 352,600.00 16,577.00 369,177.00

Total 10,337,756.75 1,088,239.25 11,425,996.00

239





Hambantota Weerawila 1,134,362.00 2,880.00 1,137,242.00Dehigahalanda 411,651.00 0.00 411,651.00Dehigahalanda 2 937,171.00 5,539.00 942,710.00Dehigahalanda 3 109,652.00 0.00 109,652.00Ambalanthota 600,916.00 3,973.00 604,889.00Pannegamuwa 496,371.00 3,400.00 499,771.00Suriyawewa 449,021.00 0.00 449,021.00Kahandawa 244,737.00 0.00 244,737.00Kahandawa 2 588,217.00 0.00 588,217.00Yatiyana (Matara) 107,313.00 0.00 107,313.00Pallemalala 683,348.00 0.00 683,348.00Weeraketiya (Gurugodella) 158,348.00 0.00 158,348.00Hakuruwela 197,141.00 0.00 197,141.00

Monaragala Medagama 230,452.00 448,315.00 678,767.00Athimale 175,773.00 28,200.00 203,973.00Dodamwatte 1,057,362.00 6,452.00 1,063,814.00Buttala 2 55,150.00 0.00 55,150.00Hulandawa 686,342.00 800.00 687,142.00Hulandawa 2 (Vaipol) 146,666.00 8,837.00 155,503.00Kachchigala-ara 239,927.00 2,346.00 242,273.00Kachchigala-ara 2 919,533.00 565.00 920,098.00Kukurampola 184,472.00 500.00 184,972.00Pelwatte 921,818.00 2,661.00 924,479.00Kiri-ibban-ara 29,224.00 0.00 29,224.00Muthukandiya 02 48,952.00 187,171.00 236,123.00

Rathnapura Kuttigala 03 868,327.00 8,735.00 877,062.00Kuttigala 02 374,863.00 0.00 374,863.00Kaltota (Kongahamankada) 30,700.00 901.00 31,601.00Kaltota (PMB) 322,685.00 6,513.00 329,198.00Embilipitiya Sathosa 251,742.50 23,170.00 274,912.50Welipathayaya 10,191.00 0.00 10,191.00

Total 12,672,427.50 740,958.00 13,413,385.50

240


North Western Region

2009 Yala Season - Paddy Purchasing Programme



Kurunegala Nikaweratiya 2 1,142,001.00 160,326.00 1,302,327.00Mahawa 30,250.00 13,825.00 44,075.00Gettuwana 272,950.00 231,562.00 504,512.00Meegalewa 371,700.00 10,060.00 381,760.00Ma-Eliya 516,800.00 255,690.00 772,490.00Galgamuwa 137,600.00 36,150.00 173,750.00Galewela 69,650.00 13,750.00 83,400.00Dambadeniya 25,100.00 20,350.00 45,450.00

Puttalam Thabbowa 541,500.00 202,100.00 743,600.00Anamaduwa 1,797,430.00 199,410.00 1,996,840.00Rajakandaluwa 438,150.00 94,850.00 533,000.00Eluwankulama 7,750.00 12,300.00 20,050.00

Total 5,350,881.00 1,250,373.00 6,601,254.00

243

Annex 6

Change of certified prices for paddy from 1948 – 2010 bushel

Year certified prices

From To Price of 1 kg Price of a bushel

Rs. Cts. Rs. Cts.

19481951 August1952 September1967 November1972 November1973 February 151973 October 011974 March 301974 July 111977 November 161980 November 061981 January 291981 September 151983 March 081985 November 141988 August 101990 February 061991 March 111993 May 101994199519961997199819992000/ 2001 Maha season2001 Yala season2001/ 2002 Maha season2002 Yala season2002/ 2003 Maha season2003 Yala season2003/ 2004 Maha season2004 Yala season2004/ 2005 Maha season2005 Yala season2005/ 2006 Maha season2006 Yala season2006/ 2007 Maha season2007 Yala season2007/ 2008 Maha season2008 Yala season2008/ 09 Maha season2009 Yala season2009/ 10 Maha season2010 Yala season

1951 July1952 August1967 October1972 October1973 February 141973 September 301974 March 291974 July 101977 November 151980 November 051981 January 281981 September 141983 March 071985 November 131988 August 091990 February 051991 March 101993 May 09

0000001111222233567777777

12.50 - 13.5012.50 - 13.5013.50 - 14.5013.50 - 14.5013.50 - 14.5013.50 - 14.5014.50 - 15.5014.50 - 15.5015.50 - 16.5015.50 - 16.5015.50 - 16.5015.50 - 16.5016.50 - 17.5016.50 - 17.50

20-2228-3028-3028-3028-3028-30

38435767728620445891395175993583265042424242424242

891214151825303340505257627080

110136155155155155155155155

00000000000000000000005050500000000000000000000000

1 Bushel = 20.5 kgPrice of paddy after 1999 was stated here from kilograms

244

Annex 7

Storages belonging to Paddy Marketing Board

No Storages Capacity OtherMt. Tons

Ampara ZoneAmpara District

1 Mahaoya 1 1040 Paddy Marketing Board2 Mahaoya 2 1040 Paddy Marketing Board3 Gonagolla 1040 Paddy Marketing Board4 Kohombana 1 1040 Paddy Marketing Board5 Kohombana 2 1040 Paddy Marketing Board6 Palam kandaura 1 1040 Paddy Marketing Board7 Palam kandaura 2 1040 Paddy Marketing Board8 Komariya 1 1040 Paddy Marketing Board9 Komariya 2 1040 Paddy Marketing Board10 Kumarigama 1040 Paddy Marketing Board11 Weeragoda 1 1040 Paddy Marketing Board12 Weeragoda 2 1040 Paddy Marketing Board13 Ampara 1 1040 Paddy Marketing Board14 Ampara 2 1040 Paddy Marketing Board15 Damana 1 1040 Paddy Marketing Board16 Damana 2 1040 Paddy Marketing Board17 Nellikele 1500 Paddy Marketing Board- Being renovated18 Samanathuraya 1 1040 Paddy Marketing Board19 Samanathuraya 2 1040 Paddy Marketing Board20 Pothuwil 1 1040 Paddy Marketing Board21 Pothuwil 2 1040 Paddy Marketing Board22 Addalachchena 1045 Paddy Marketing Board23 Akkarapattuwa 1600 Paddy Marketing Board- Renovated24 Sandunpura 1500 Paddy Marketing Board

Kandy District25 Pallewatta 2 1040 Paddy Marketing Board26 Pallewatta 3 1040 Paddy Marketing Board27 Pallewatta 4 1040 Paddy Marketing Board28 Pallewatta 5 1040 Paddy Marketing Board29 Pallewatta 6 800 Paddy Marketing Board30 Kolongoda 2 1040 Paddy Marketing Board31 Hasalaka Mills 600 Paddy Marketing Board32 Morayaya 1 1040 Paddy Marketing Board- Renovated33 Morayaya 2 1040 Paddy Marketing Board- Renovated

Badulla District34 Mahiyanganaya 1 1040 Paddy Marketing Board35 Mahiyanganaya 2 1040 Paddy Marketing Board36 Medayaya 1040 Paddy Marketing Board37 Karametiya 1 1040 Paddy Marketing Board38 Karametiya 2 1040 Paddy Marketing Board39 Girandurukotte 1 1040 Mahaweli Authority - Polonnaruwa Zone39 Girandurukotte 2 1040 Mahaweli Authority - Polonnaruwa Zone

245

North WesternPuttalam District

41 Rajakadaluwa 1000 Paddy Marketing Board42 Anamaduwa 1 1000 Paddy Marketing Board43 Anamaduwa 2 1000 Paddy Marketing Board44 Thabbowa 1 1000 Paddy Marketing Board45 Thabbowa 2 1000 Paddy Marketing Board

Kurunegala District46 Nikaweratiya 1 1000 Paddy Marketing Board47 Nikaweratiya 2 1000 Paddy Marketing Board48 Nikaweratiya 3 1300 Paddy Marketing Board- New Construction49 Nikaweratiya 4 800 Paddy Marketing Board- Renovated50 Nikaweratiya 5 200 Paddy Marketing Board- Renovated51 Nikaweratiya 6 2000 Paddy Marketing Board- Being renovated52 Mahawa 1 2000 Paddy Marketing Board- Renovated53 Mahawa 2 1000 Paddy Marketing Board- Renovated54 Mahawa 3 1000 Paddy Marketing Board55 Galgamuwa 1045 Paddy Marketing Board56 Ma eliya 1 1000 Paddy Marketing Board57 Ma eliya 2 1000 Paddy Marketing Board58 Ma eliya 3 1000 Paddy Marketing Board

Matale District59 Galewela 1 1000 Paddy Marketing Board60 Galewela 2 1000 Paddy Marketing Board

Southern ZoneHambantota District

61 Weerawila 1 1000 Paddy Marketing Board62 Weerawila 2 1000 Paddy Marketing Board63 Pallemalala 1000 Paddy Marketing Board64 Suriyawewa 1000 Paddy Marketing Board65 Dehigahalanda 1 1000 Paddy Marketing Board66 Dehigahalanda 2 1000 Paddy Marketing Board67 Dehigahalanda 3 1000 Paddy Marketing Board68 Ambalantota 1 500 Paddy Marketing Board69 Weeraketiya 1000 Paddy Marketing Board - New Construction70 Kachchigal-ara 1 1000 Paddy Marketing Board71 Kachchigal-ara 2 1000 Paddy Marketing Board

Monaragala District72 Medagama 1000 Paddy Marketing Board73 Muthukandiya 1 1000 Paddy Marketing Board74 Muthukandiya 2 500 Paddy Marketing Board - New Construction75 Ethimale 1000 Paddy Marketing Board76 Dodamwatte 1 1000 Paddy Marketing Board77 Dodamwatte 2 1000 Paddy Marketing Board78 Hambegamuwa 1500 Paddy Marketing Board - New Construction79 Wellawaya 1500 Paddy Marketing Board80 Hulandawa 3000 Food Department- Renovated


246

Rathnapura District81 Kuttigala 1 1000 Paddy Marketing Board82 Kuttigala 2 1000 Paddy Marketing Board83 Kuttigala 3 1000 Paddy Marketing Board84 Embilipitiya 1000 Paddy Marketing Board85 Kaltota 1000 Paddy Marketing Board86 Moraketiya 1000 Paddy Marketing Board87 Moraketiya rice mill 750 Paddy Marketing Board

Polonnaruwa ZonePolonnaruwa District

88 Medirigiriya 1358 Paddy Marketing Board89 Manampitiya 1 1045 Paddy Marketing Board - Being renovated90 Manampitiya 2 1045 Paddy Marketing Board - Being renovated91 Hingurakgoda 1 1045 Paddy Marketing Board92 Hingurakgoda 2 1045 Paddy Marketing Board93 Hingurakgoda 3 730 Paddy Marketing Board94 Hingurakgoda 4 1045 Paddy Marketing Board95 Hingurakgoda 5 1000 Paddy Marketing Board96 Hingurakgoda 6 1000 Paddy Marketing Board97 Hingurakgoda 7 1000 Paddy Marketing Board98 Bakamuna 1045 Paddy Marketing Board99 Kusum Pokuna 1568 Paddy Marketing Board100 Aralaganwila 9 post 1000 Paddy Marketing Board - Renovated101 Wijayapura 1045 Paddy Marketing Board102 weerapura 1 1568 Paddy Marketing Board103 Thalpotha 1 1358 Paddy Marketing Board104 Thalpotha 2 1045 Paddy Marketing Board105 Jayanthipura 1 1045 Paddy Marketing Board106 Jayanthipura 2 1045 Paddy Marketing Board107 Abhayapura 1000 Paddy Marketing Board108 Diyabeduma 1045 Paddy Marketing Board109 Kaduruwela 1 1045 Paddy Marketing Board110 Kaduruwela 2 1045 Paddy Marketing Board111 Kaduruwela 3 730 Paddy Marketing Board112 Kaduruwela 4 3000 Paddy Marketing Board113 Madudamana 1045 Paddy Marketing Board - Under Construction114 ZD 1 Storages 1000 Paddy Marketing Board - Renovated115 ZD 2 Storages 750 Paddy Marketing Board - Renovated116 ZD 3 Storages 1000 Paddy Marketing Board - Renovated117 ZD 4 Storages 2000 Paddy Marketing Board - New Construction118 Wijayabapura 1000 Paddy Marketing Board119 Welikanda 1 1045 Paddy Marketing Board120 Welikanda 2 1045 Paddy Marketing Board121 Welikanda 3 1045 Paddy Marketing Board122 Welikanda 4 1045 Paddy Marketing Board123 Ambagaswewa 750 Paddy Marketing Board

Matale District124 Handungamuwa 1045 Paddy Marketing Board125 Hettipola 1 1000 Paddy Marketing Board126 Hettipola 2 1000 Paddy Marketing Board127 Hettipola 3 1000 Paddy Marketing Board128 Pelwehera 1 1568 Paddy Marketing Board


247

129 Pelwehera 2 1000 Paddy Marketing Board130 Kandalama 1 1045 Paddy Marketing Board131 Kandalama 2 730 Paddy Marketing Board

Anuradhapura ZoneAnuradhapura District

132 Thalawa 1 1000 Paddy Marketing Board133 Thalawa 2 1000 Paddy Marketing Board134 Thalawa 3 1000 Paddy Marketing Board135 Senananayake 1 1045 Paddy Marketing Board136 Senananayake 2 1045 Paddy Marketing Board137 Senananayake 5 1045 Paddy Marketing Board138 Senananayake 6 1045 Paddy Marketing Board139 Anuradhapura Senanayake 2000 Paddy Marketing Board - Renovated140 Thambuttegama 1500 Paddy Marketing Board141 Rajanganaya 1000 Paddy Marketing Board142 Bulnewa 1 1000 Paddy Marketing Board143 Bulnewa 2 1000 Paddy Marketing Board144 Bulnewa 3 2000 Paddy Marketing Board145 Negama 1 1500 Paddy Marketing Board146 Katiyawa 1000 Paddy Marketing Board147 Kekirawa 1 1500 Paddy Marketing Board148 Kekirawa 2 1500 Paddy Marketing Board149 Shrawasthipura 1 1000 Paddy Marketing Board150 Nochchiyagama 1 1000 Paddy Marketing Board - Renovated151 Nochchiyagama 2 1000 Paddy Marketing Board - Renovated152 Yakalla 1500 Paddy Marketing Board153 Kahatagasdigiliya 1000 Paddy Marketing Board154 Rambewa 1000 Paddy Marketing Board155 Kebithigollewa 1000 Paddy Marketing Board156 Medawachchiya mill Storages 2000 Paddy Marketing Board157 Anuradhapura Center 1500 Paddy Marketing Board158 Anuradhapura mill Storages 1500 Paddy Marketing Board159 Anuradhapura h 3A 1000 Paddy Marketing Board160 Horowpathana 1500 Paddy Marketing Board161 Kalawewa (Vijithapurar) 2000 Paddy Marketing Board - Renovated162 Padavi Parakramapura 1 1000 Paddy Marketing Board163 Padavi Parakramapura 2 1000 Paddy Marketing Board164 Padavi Parakramapura 3 1000 Paddy Marketing Board165 Senapura 1 1000 Paddy Marketing Board166 Senapura 2 1000 Paddy Marketing Board167 Vilachchiya 1000 Paddy Marketing Board - New Construction168 Padaviya 1000 Paddy Marketing Board169 Galen Bindunu Wewa 1 1000 Paddy Marketing Board

North ZoneVavuniya District

170 Vavuniya 2100 Paddy Marketing Board171 Mawaduwa 745 Paddy Marketing Board172 Weppakulam 01 840 Paddy Marketing Board173 Weppakulam 02 840 Paddy Marketing Board174 Weppakulam 03 1045 Paddy Marketing Board175 Weppakulam 04 525 Paddy Marketing Board176 Nedunkerni 745 Paddy Marketing Board


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Mannar District177 Alkadiweli 1 1045 Paddy Marketing Board178 Alkadiweli 2 1045 Paddy Marketing Board179 Alkadiweli 3 1045 Paddy Marketing Board

Anuradhapura ZoneKilinochchi District

180 Ramanadanpuram 1 1000 Paddy Marketing Board181 Wattakachchi 1 250 Paddy Marketing Board182 Wattakachchi 2 250 Paddy Marketing Board183 Kilinochchi 1 250 Paddy Marketing Board184 Kilinochchi 2 250 Paddy Marketing Board185 Kilinochchi 3 250 Paddy Marketing Board

Mulativu District186 Mankulam 1 250 Paddy Marketing Board187 Mankulam 2 250 Paddy Marketing Board188 Thunukkai 1 250 Paddy Marketing Board189 Thunukkai 2 250 Paddy Marketing Board190 Mulaitivu Town 1000 Paddy Marketing Board191 Udayarkattu 1000 Paddy Marketing Board

Eastern ZoneBatticaloa District

192 Walachchenai 1 2000 Paddy Marketing Board193 Walachchenai 2 1000 Paddy Marketing Board

Trincomalee District194 Kallaru 1 1000 Paddy Marketing Board195 Kallaru 2 1000 Paddy Marketing Board196 Kantale 1 1000 Paddy Marketing Board197 Kantale 2 1000 Paddy Marketing Board198 Kantale 3 500 Paddy Marketing Board199 Kantale 4 1000 Paddy Marketing Board200 Padavi Sripura 1000 Paddy Marketing Board201 Gomarankadawala 1000 Paddy Marketing Board202 Love Lane 1 1500 Paddy Marketing Board203 Love Lane 2 1500 Paddy Marketing Board204 Love Lane 3 1500 Paddy Marketing Board205 Love Lane 4 735 Paddy Marketing Board206 Love Lane 5 735 Paddy Marketing Board207 Love Lane 6 735 Paddy Marketing Board208 Love Lane 7 1045 Paddy Marketing Board

Colombo District209 Meetotamulla Storages 5000 Paddy Marketing Board


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Annex 8

Paddy varieties suitable for high yield.

The basic factor for obtaining high yield is to select the appropriate variety of seed paddy. The agriculturaldepartment has recommended 36 varieties of paddy that are suitable for the various soil and climatic conditions.

These developed paddy varieties give high yield than those of old varieties under any circumstances.

New developed paddy varieties are able to produce higher yield at optimum environmental and cultivate conditions.

Out of these varieties, long term varieties (4 or 4 and half months) can produce high yield than those of short termverities (3 or 3 and half months) even under rather nonconductive environmental conditions.

The farmers have proved that under higher cultivable conditions, even short term paddy varieties can producehigher yield equivalent to 200 bushels and acre.

To obtain higher yield from short term paddy varieties, quality environmental and higher cultivable conditionsshould be maintained.

Popular paddy varieties approved the recommended by the Agriculture Department are given below.

The life span of these paddy varieties can be varied from 7 days to 10 days according to the season and theenvironmental and cultivable conditions of relevant provinces.

Important qualities of the paddy varieties recommended by the Agriculture Department.

3 months varieties

BG 300

White medium size grain, resistant to Blight Leaf and other related diseases. In addition it is somewhat resistantto brown hopper pest. Produce a harvest of 100 to 120 bushels an acre.

AT 303

A grain with red bran. Popular variety in Hambantota district. Produce a harvest of 100 to 120 bushels an acre.White long grain. Resistant to Gall Midge and Brown hopper fest. Also resistant to blight leaf and other relateddiseases. Fairly resistant to dry weather. Produce a harvest of 100 to 120 bushels an acre.

BG 305

A white long grain. Resistant to blight leaf, gold midge and brown hopper fest. Produce a harvest of 110 to 130bushels an acre.

BW 272-6B

Small red grain with high nutritional quality. Resistant to iron toxicity. More suitable for the watery fields in the lowcountry wet zone. Produce a harvest of 60 to 70 bushels an acre.

3 and half month paddy varieties

BG 94-1

White long grain. Gives high yield in line with the amount of fertilize used. Vulnerable to leaf withering diseases.Most popular variety in the Ampara district. In some instances it has produced 200 bushels an acre.

BW 267 – 3

White long grain. More suitable for sandy and muddy fields in the low country wet zone. Highly resistant to irontoxicity. Produce a harvest of 60 to 70 bushels an acre.

BG 350

Red grain. Gives high yield in line with the amount of fertilize used. Vulnerable to leaf withering diseases. Mostpopular variety in the Ampara district. In some instances it has produced 150 bushels an acre.

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BW 351

Red grain. Fairly resistant to blight leaf, leaf withering diseases and related diseases. resistant to iron toxicity.produced 150 bushels an acre.

BG 352

White medium long grain. resistant to leaf withering diseases. Somewhat vulnerable to bacteria blight leaf andrelated diseases. Most popular variety in the Polonnaruwa district. Produced 150 bushels an acre.

AT 353

Red grain. Suitable for problematic soil. Somewhat vulnerable to blight leaf. Produced 150 bushels an acre.

AT 354

White grain. Resistant to Salinity. Produced 150 bushels an acre. In some instances it has produced 200 bushelsan acre.

LD 355

White Samba variety. Resistant to brown patch disease and blight leaf. More suitable to low country wet zone.Produced 120 bushels an acre.

LD 356

Red Samba variety. Suitable to low country wet zone. Produced 120 bushels an acre.

BG 357

White medium size grain. Resistant to brown hopper pest, gall midge and other related insect damages. Alsoresistant to blight leaf and leaf withering. Produced 160 bushels an acre. In some instances it has produced 200bushels an acre.

BG 358

White Samba variety. Resistant to brown hopper pest, gall midge and other related insect damages. Harvestingshould not be delayed. Produced 160 bushels an acre. In some instances it has produced 200 bushels an acre.

BG 359

White grain. Resistant to leaf withering, gall midge, brown hopper pest and iron toxicity. Recommended for wetzone. Produced 150 bushels an acre.

BG 360

White Samba variety with high nutritional value. Resistant to leaf withering and gall midge. Also known as KeeriSamba at the market. Produced 150 bushels an acre.

BW 361

Red grain. Medium resistant to leaf withering and brown hopper pest. Recommended for dry zone. Produced 150bushels an acre.

AT 362

Red grain. Resistant to leaf withering blight leaf and brown hopper pest. Produced 150 bushels an acre.

4 – 4 and half months varieties.

BG 379 - 2

White medium size grain. Resistant to brown hopper pest and leaf withering blight leaf. Gives high yield in linewith the amount of fertilize used. Separating seeds from the pod is fairly difficult. Produced 150 bushels an acre.

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BG 450

White Samba variety. Resistant to Gall midge and iron toxicity. Harvesting should not be delayed. Produced 140bushels an acre.

BG 400

Red variety. Resistant to salinity. Produced 140 bushels an acre.

AT 401

Highly Resistant to salinity. Produced 140 bushels an acre.

AT 402

Red variety. Can be cultivated instead of H-4 variety. Produced 150 bushels an acre.

BG 403 (Mahasen)

White medium size grain. Resistant to brown hopper pest. Fairly resistant to leaf withering and bacteria blight leaf.

AT 405 (Lanka Samurdhi)

A variety with the quality of Basmathi. Fairly vulnerable to leaf blight. Produced 120 bushels an acre. 4 to 4 andhalf month paddy varieties takes rather long period up to harvesting in the yala season and relatively lower periodin the Maha season.

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Popular Rice Varieties Developed by RRDI, Sri LankaVariety by Year Podigree Recommended Mat. dur. Higher yld. Attributesmat.dur. released for (days) recorded

(t/ha)5-6 monthBg 3-5 1973 Panduruwee/Mas/Engkatek ML 150-180 5.5 Photoperiod sensitive (PS)Bg 407 1981 IR5/Panduruwee ML 150-180 7.5 PS, resistant to BBBg 745 1981 71-554/Podiwee A8 ML 150-180 6.0 PS, samba grainBg 38 1981 Engkatek//H-4/Podiwee A8 ML 150-180 6.0 PS, Samba grain4 1/2 monthBg 379-2 1980 Bg 96-3*2/Ptb33 GC 135 8.5 Resistant to BPH and BBBg 450 1985 Bg 12-1*2/IR42 GC 130 6.0 Samba grain, resistant to GM-1Bg 454 2005 MR1523/87-519 GC 128 9.0 White Pericap MR to BPH,

RGM, and MR to Blast, BLB4 monthAt 402 1992 IR 4432-52-6-4/Bg 90-2// Southern Province 120 7.5 Red Pericarp, good for Matara

76-3990/Ob678 Hambantota and replacement for H4Bg 403 1993 83-1026/Bg 379-2 GC 120 8.0 White pericarp resistant to(Mahasen) BL and BLBBg 406 2005 Bg 73-797/ptb 33/ob 678 Northern Region 120 7.0 Red pericarp R to BPH and MR

to BlastBg 407H 2005 Bg CMS IA x IR54742-22-19-3R High Potential area 120 13.0 Hybrid variety White pericarp Resistant to Blast,

BPH and RGM Tolerant to IrontoxicityLd 408 2010 At 1/Ld 98-152 BC 110 7 BPH/GM/B-MR, BLB-MS

Red Pericap, Neck Blast-MR3 1/2 monthBg 94-1 1975 IR262/Ld66 GC 105 8.5 High YieldBw 351 1986 Bg 90-2/Bg 401-1 High potentionl areas 105 5.0 Red pericarp, moderately resistant

(mineral soils) of LCWZ to sheath blight and iron toxicityBg 352 1992 Bg 380/Bg 367-4 GC 105 6.0 Resistant to BI and BPH white

Pericarp, intermediate bold type grainsAt 353 1992 Bg 94-1 (R)/Bg 400-1// Saline area 105 6.5 Red pericarp, MR to Blast and BB,

Bg 94-1 good for potential acid salineconditions found in Nilwala scheme.

At 354 1992 Bg 94-1/Pokkali Saline areas 105 5.0 White pericarp, saline resistant,resistant to lodging

Ld 356 1994 Bw 451/Bw 351 Kalutara and Gall district 100 4.5 Short round grain/moderately tolerantto iron toxicity, resistant to seed spotand rice Gallmidge

Bg 357 1997 Bg 797/Bg 300// 85-1580/ GC 106 9.55 Resistant to BPH, GM 1 and 2, MR toSene¾ng M-17 thrips, R/MR to Blast, MR to (Iron

toxicity) and low temperature, Whitepericarp, L/M

Bg 358 1999 Bg 12-1/Bg 1492 GC 105 9.5 Samba, Resistant to BPH, BL and BLB,Moderately tolerant to lron toxicity

Bg 359 1999 88-5089/Bg 379-2 WZ 105 7.0 Resistant to MG I and II BPH, BL,moderately tolerant to lron toxicity

Bg 360 1999 84-3346/IR36//Senerang GC 105 6.5 Good grain quality, Resistant to GM I(Keera Samba) and IIBw361 2002 IR 36/Bw 267-3-11M Dry & Intermediate zone 105 5.0 Red pericarp, GM-MR, BPH-MR, BL-

MRAt 362 2002 At 85-2 / Bg 380 GC 105 7.0 Red pericarp, BPH-MR, BL-MR, BLB-

MR/MSBw 363 2004 IR 36 / Bw 267-3-11M GC 105 10 White Pericarp, moderately resistant to

blast, BPH & GMBw 364 2006 Bw 400/ob 2552//Bg357 Wet Zone 105 7.0 Red Pericarp, iron toxicity, Blast, BLP,

BHP & RGMLd 365 2008 SEL Ld 355 WZ 105 6 BPH/GM/Blast-MR, BLB-MS Neck

Blast-MR, Red SambaBg 366 2009 BG 300/94-2236//Bg300/Bg 304 GC 99 9 GM/BPH-MR BLB-MS

Blast-R/MR, White Pericap3 monthBw 272-6B 1981 Bw 259-3/Bw 242-5-5 LCWZ, (Suitable for mineral, 90 4.0 Red pericarp, replacement for Herath

half bog and bog soils) Banda, Batapolal, resistant to BL,resistant to lodging

Bg 300 1987 Bg 367-7//IR 841/Bg 276-5 GC 90 7.0 Resistant to GM-1, BPH, BL and BBAt 303 1990 At 66-2/Bg 276-5 GC 90 5.0 Red pericarp, resistant to BLBg 304 1993 Co 10/IR 50//84-1587/ GC 85 7.4 Good grain quality. White pericarp

Bg 731-2 resistant to BPH, GM I and II, BL andBLB suitable to RF drought prone area

Bg 305 1999 Bg 1203/Bg 1492 GC 90 8.0 White pericarp, resistant to GM I andII, BPH, BL and BLB

At 306 2004 OB 2273/At 05 GC 90 6.0 Basmathi green quality, long/slender,moderately resistant to BLB and GMResistant to blast and BPH

At 307 2005 Bg 2225-1//BG 96-3298 GC 90 7.0 White pericap resistant to BPH RGMand Blast

At 308 2008 Bg 2225-1/Bg 2426-2 GC 90 6 Blast-R/MR, BLB-MRBPH-R/MR, GM-MS, W/S

2 1/2 monthBg 250 2005 Selection from farmer field Reinfed and flash flood areas 80 4.5 Ultra-short maturity

R/MR for BPH and Blast

BB - Bacterial Blight, BL - BPH - Brown Planthopper, GM-1 - Gall midge (Biotype 1) PS - Photoperiod sensitiveRecommendations GC = General cultivation, MI/DI = Major irrigation in Dry and Intermediate Zones,

ML = Mawee lands, RF/DI = Rainfed Dry & Int. zone

Annex 9

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Weights and Measures Conversion Factors

British to Metric Units

1 acre = 0.405 hectares (ha)1 pound (1b) = 0.454 kilogrammes (kg)1 long ton (22401bs) = 1.016 Mt. Ton1 hundred weight (cwt) = 50.802 kg1 mile = 1.609 kilometers (km)1 long ton mile = 1.635 Mt. Ton km1 lb/acre = 125.536 kg/ha1 print = 0.75 litres1 imperial gallon = 4.55 litres

Metric to British Units1 hectare = 2.471 acres1 kilogramme = 2.205 1bs1 Mt. Ton (1,000kg) = 0.984 long ton1 metre = 3.281 feet1 kilometre = 0.621 long ton mile1 litre = 1.76 pints

= 0.219 imp. gallons1 kg/ha = 0.892 lb/acre

Paddy/ Rice Conversion

1 bushel of paddy = 20.87 kg(46 lbs)1 Mt. Ton paddy = 47.92 bushels paddy

= 0.7 Mt. Ton rice1 Mt. Ton rice = 68.46 bushels paddy

= 1.43 Mt. Ton paddy1 bushel paddy/acre = 51.55 kg. paddy/ha

Annex 10

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The new paddy store has been inaugurate ..!

Refurbished Paddy Store

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The paddy store being constructed.

Subjection to quality control

The masses of paddy been broughtto paddy store

The way the Paddy has been stored

PADDY MARKETING BOARDAnnual Accounts - 2010

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INCOME STATEMENT FOR THE YEAR ENDED 31st DECEMBER 2010

Notes 2010 2009Rs. Rs.

TURN OVER 01 138,947,952 1,705,383,288

COST OF SALES-PADDY 02 118,133,492 1,441,531,620

GROSS PROFIT (LOSS) 20,814,460 263,851,668

OVERHEAD OF PADDY OPERATION 03 (244,410,496) (122,364,010)

(223,596,036) 141,487,658

PROFIT ON RICE SALES 04 3,157,266

OTHER INCOME 05 85,376,669 56,230,233

(135,062,100) 197,717,892

SELLING AND DISTRIBUTION COST 06 (3,424,313) (12,327,396)

ADMINISTRATION EXPENSES 07 (46,706,929) (24,396,191)

OTHER EXPENSES 08 (1,539,439) (266,086)

FINANCE COST 09 (160,014,253) (10,010,959)

(211,684,934) (47,000,632)

PROFIT/(LOSS) BEFORE TAXATION (346,747,034) 150,717,260

TAXATION - -

PROFIT/(LOSS) AFTER TAXATION (346,747,034) 150,717,260)

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PADDY MARKETING BOARDBALANCE SHEET AS AT 31st DECEMBER 2010

Notes 31.12.2010 31.12.2009Rs. Rs.

ASSETSNON CURRENT ASSETSProperty Plant and Equipment 10 121,217,381 113,483,369Investments 11 327,875,478 314,464,767

449,092,860 427,948,136CURRENT ASSETSInventry 12 5,497,387,501 192,391,999Other Receivables 13 87,542,809 14,496,720Advances 14 24,146,852 4,738,018Purchase control A/C 49,743,530 156,381Uneconomic Assets 15 632,112,315 632,112,315Cash & Cash Equivalents 16 13,008,919 305,396,474

6,303,941,927 1,149,291,907

TOTAL ASSETS 6,753,034,786 1,577,240,043

EQUITY AND LIABILITIESCAPITAL & RESERVESContributed Capital 404,877,451 404,877,451Funds 17 226,607,067 226,607,067Retained Profit/ (Loss) (2,161,559,742) (1,802,099,629)

(1,530,075,224) (1,170,615,111)CURRENT LIABILITIESCreditors 18 5,695,236,588 310,000,000Other Payables 19 225,107,454 215,444,163Provisions 20 147,638,492 99,259,925Retirement Benefit Obligations 21 2,724,617 2,787,005Uneconomic Liabilities 22 2,118,205,195 2,118,205,370Bank deposit control 2,158,690 2,158,690Bank Overdraft 23 92,038,976 -

8,283,110,011 2,747,855,154

TOTAL EQUITY AND LIABILITIES 6,753,034,786 1,577,240,043

The Accounting Policies on page no. 05 - 09 and the Notes on page nos. 10 - 20 form an Integral part ofthese Financial Statements. Account has been prepared in accordance with general exceptionalAccounting Principles.

Deputy General Manager (Finance)

The Preparation and presentation of Financial Statements are the responsibility of the Board of Directors.

Chairman DirectorDate Date

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STATEMENT OF CHANGES IN EQUITY FOR THE YEAR ENDED 31.12.2010

Stated General Retained TotalCapital Reserve Profit/ (Loss)

Rs. Rs. Rs. Rs.

Balance as at 01.01.2009 631,484,518 - (1,953,405,595) (1,321,921,077)

Transfers -

Prior year adjustments 588,706 588,706

Net Profit/(Loss) for the year - - 150,717,260 150,717,260

Balance as at 31.12.2009 631,484,518 - (1,802,099,629) (1,170,615,111)

Balance as at 01.01.2010 631,484,518 - (1,802,099,629) (1,170,615,111)

Transfers - - - -

Prior year adjustments - - (12,713,079) (12,713,079)

Net Profit / (Loss) for the year - - (346,747,034) (346,747,034)

Balance as at 31.12.2010 631,484,518 - (2,161,559,742) (1,530,075,224)

Note :The Accumilated losses included prior to recharging the Paddy Marketing Board in December 2007,was Rs. 1,938,666,988.30

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CASH FLOW STATEMENT FOR THE YEAR ENDED 31.12.2010

2010Rs.

Cash Flows from Operating ActivitiesNet Profit/Loss - Before Tax (346,747,034)

Adjustments forDepreciation 4,961,734Fixed Deposits Interest (16,550,343)Provisions 147,638,492)

Operating Profit Before Working Capital Changes (210,697,152)

(Increase)/Decrease in Inventories 130,473,988(Increase)/Decrease Trade & Other Creditors 231,952,733Increase/(Decrease) in Trade & Other Receivable 87,542,809Cash Generated from Operations 239,272,378Interest paid -Net cash from Operating Activities 239,272,378

Cash Folows from Investing ActivitiesPurchase of Property, Plant & Equipments (12,695,746)Investment in Fixed Deposit -Net Cash flow Used in Investing Activities (12,695,746)

Net Increase(Decrease) in Cash & Cash Equivalent 226,576,632Cash & Cash Equivalent at the beginning of the Period (305,606,689)Cash & Cash Equivalent at the end of the Period (Note A) (79,030,057)

Analysis of Cash & Cash EquivalentsNote ACash & Cash Equivalents 13,008,919Bank Overdrafts (92,038,976)

(79,030,057)

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SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES FOR THE YEAR ENDED 31st

DECEMBER 2010

1. CORPORATE INFORMATION

1.1 Domicile and legal Form

The Paddy Marketing Board is a Board established under the provisions of Paddy MarketingBoard Act. No. 14 of 1971, and domiciled in Sri Lanka. The registered office of the Boardis located at No. 330, Union Place, Colombo 02. The Paddy Marketing Board was underliquidation during the period 2000 to 2007, and was reactivated by the Minister of AgriculturalDevelopment and Agrarian Services, Hon. Maithripala Sirisena with effect from 1st December2007.

1.2 Principal Activities and Nature of Operations

The Board's principal activity is buying and selling of paddy.

1.3 Number of Employees,

The number of employees at the year was 100(corresponding figures for the year 2008 was 06)

2. GENERAL

Significant of Accounting Policies

2.1 Statement of compliance

The financial statements presented in Sri lankan Rupees have been prepared in accordancewith Sri Lanka Accounting Standards issued by the Institute of Chartered Accountants ofSri Lanka (ICASL), and the requirements of the Companies Act. No. 07 of 2007.

Basis of Preparation

The company financial statements have been prepared under the historical cost convention.No. other adjustment has been made for inflationary factors affecting the financial statements.

2.2 Assets and Bases of their valuation

2.2.1 Property, Plant & Equipment

Items of Property, Plant & Equipment are stated at cost less accumulated depreciationand impairment losses. The cost of self-constructed assets includes the cost ofmaterials, direct labour and an appropriate proportion of production overheads.

Depreciation

Depreciation is charged to the income statement on a straight-line basis for all assets

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at the following rates:

Land & Building 2.5% per annumMotor Vehicles 20% per annumOffice Equipment 20% per annumFixtures 20% per annumTemporary Building 20% per annum

The value of land and building are not stated separating in the accounts from theinitial stage of the Board. Therefore the value of both land & buildings have beenconsidered for purpose of providing for depreciation.

The rice mills have not been depreciated since 1990, as those are not in use.

The company provides depreciation from the date the assets are available for usewhere as depreciation of assets ceases at the earlier of the date that the asset isclassified as held for sale and the date that the asset is derecognized, at the abovementioned rates on a straight line basis over the period appropriate to the estimateduseful lives of the different types of assets.

The appropriateness of useful lives of the assets and the depreciation rules areassessed annually.

The carrying amount of all assets is written down immediately to its recoverableamount if the asset’s carrying amount is greater than its estimated recoverable amount.

2.2.2. Investment Property

2.2.2.1.Classification

The land and buildings held to earn rental income and for capital appreciationare classified as investment properties.

2.2.2.2.Valuation

Investment properties are initially recognized at cost. Subsequent to theinitial recognition the investment properties are stated at fair values whichreflect the market condition as at balance sheet date. Gains and losses arisingfrom changes in fair value are included in the income statement in the yearwhich they arise.

Fair value of the investment property will be determined once in every 3year on the basis over valuation by an independent valuer while the annualfair value of the investment property will be carried out by an entity’s Boardof Directors. However, if market conditions change in such a way wherethe directors of the company are unable to carry out a reasonable valuation,a valuation of an independent valuer will obtained for that year too.

Investment properties are derecognizing when disposed of, or permanentlywithdrawn from use because no future economic benefits are expected.Any gains or losses retirement or disposal are recognize in the incomestatement in the year or retirement of disposal. Transfers are made to and

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from investment property only when there is a change in use in accordancewith the criteria listed in SLAS 40.

2.2.3. Trade and Other Receivables

Trade and other receivables are stated at their estimated realized value.

2.2.4. Inventories

Inventories are stated at the lower of the cost and net realized value. Cost is generallydetermined by reference to weighted average cost. Net realizable value is the estimatedselling price in the ordinary course of business less the estimated selling expense.

2.2.5. Investments

Short term investments are stated at lower of cost and market value, on an aggregateportfolio basis, with any resultant gain or loss recognized in the income statement.

2.2.6. Cash and Cash equivalents

Cash and cash equivalents comprise cash balances, demand deposits, fixed depositsand call deposits.

Bank overdraft that is repayable on demand and form as integral part of theCompany’s cash management is included as a component of cash and cashequivalents for the purpose of the statement of cash flows.

2.2.7. Liabilities and Provisions

Employee Benefits

(a) Defined Benefit Plan – Gratuity

The Board makes full provision on account of gratuity that may fall due forpayment under the Payment of Gratuity Act No. 12 of 1983 for all employeeswho have completed one year of service in accordance with Sri LankaAccounting Standard No. 16, Employee Benefits. The liability is not externallyfunded.

(b) Defined Contribution Plans – Employees’ Provident Fund and Employees’Trust fund

All employees of the Board are members of Employees’ Provident Fund (EPF)and Employees’ Trust Fund (ETF), to which Board contributes 12% and 3%of employee salaries respectively, and charged against the income.

2.2.8. Trade and other Payables

Trade and other payables are stated at their cost.

2.2.9. Provisions

Provisions are made for all obligations existing as at the Balance Sheet date when it

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is probable that such an obligation will result in an outflow of resources and a reliableestimate can be made of the quantum of the outflow.

2.2.10. Grants and subsidies related to assets, including non-monetary grants at fair valueare deducted at arriving at the carrying value of the asset.

2.3. Income Statement

2.3.1. Revenue

The revenue represents the invoiced value of goods and services to customers,accounts for on an accrued basis.

Revenue Recognition

Revenue from the sale of goods is recognized in the income statement when thesignificant risks and rewards of ownership have been transferred to the buyer.

2.3.2. Expenses

The profit earned by the Board before taxation as shown in the income statement isafter making provision for all known liabilities and for depreciation of property,plant and equipment.

All expenditure incurred in running of the business and in maintaining the capitalassets in a state of efficiency has been charged to revenue in arriving at profit for theyear.

Gain or losses of a revenue nature on the disposal of Property, Plant and Equipmenthave been accounted for in the income statement.

2.3.3. Dividend Income

Dividend income comprises dividends receivable in shares invested.

2.3.4. Rental Income

Rental Income is recognized on an accrual basis.

2.3.5. Income Tax Expenses

Income Tax

The provision for income tax is based on the elements of income and expenditure asreported in the financial statements and computed in accordance with the provisionsof the Inland Revenue Act No. 10 of 2006.

Current tax is the expected tax payable on the taxable income for the year, using taxrates enacted at the balance sheet date.

Deferred Tax

Deferred taxation is provided on the liability method. The tax effect of all temporarytiming differences which occur where items are allowed for income tax purposes in

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a period different from that when they are recognized in the financial statements isincluded in the provision for deferred taxation at current rates of taxation.

Deferred tax assets (debits) are recognized for all deductible temporary timingdifferences and carried forward unused tax losses, to the extent that it is probablethat future taxable profit will be available, against which such deductible temporarytiming differences can be utilized. The carrying amount of deferred tax assets isreviewed at each Balance Sheet date and reduced to the extent that it is no longerprobable that the related tax benefit will be realized.

3. EVENTS OCCURRING AFTER THE BALANCE SHEET DATE

All material events occurring after the balance sheet date have been considered and where necessary,adjustments to or disclosure have been made in the financial statements.

4. CASH FLOW STATEMENT

The cash flow statement has been prepared using the “indirect method”

5. CAPITAL COMMITMENTS AND CONTINGENCIES

All material capital commitments and contingent liabilities of the company are disclosed in therespective notes to the financial statements.

6. COMPARATIVE INFORMATION

Previous year’s figures and phrases have been re-arranged wherever necessary to conform tothe current year’s presentation.

7. UNECONOMIC ASSETS / LIABILITIES

The balances appearing in the accounts, of which either the liabilities or the value, existence andownership cannot be established due to non availability of documents and / or misplaced duringthe period under liquidation have been transferred to Uneconomic Assets / Liabilities Account.

270


NOTES TO THE FINANCIAL STATEMENTS - YEAR ENDED 31st DECEMBER 2010

2010 2009NOTE 01 - TURNOVER

Rs. Rs.Paddy Sales 140,351,467 1,711,200,019Rice Sales - 11,409,363

140,351,467 1,722,609,382Less - Turnover Tax (1,403,515) (17,226,094)

138,947,952 1,705,383,288

NOTE 02 - COST OF SALES (PADDY)Rs. Rs.

Opening Stock 179,596,102 160,924,474Purchases - Paddy 5,171,997,449 1,460,203,248 - Soya beans 130,473,988 -Add: - - -

5,482,067,539 1,621,127,722Less: Paddy closing stock (5,233,460,059) (179,596,102) Soya been closing stock (130,473,988) -

118,133,492 1,441,531,620

NOTE 03 - DIRECT OVERHEADS OF PADDY OPERATIONSRs. Rs.

Agent Commission & Transport 38,153,887 57,400,706Driage 3% - 48,633,832Bank charges for paddy operations - 5,408,539Labour cost for paddy purchasing 37,972,742 9,444,575Repairs & Maintenance -Stores 2,163,794 283,837Paddy milling charges - 616,044Transport charges 10,053,966 576,476Contract payment for paddy purchasing 3,498,468Paddy Stock Maintenance expenses 409,701Paddy Insurance charges 1,043,085Direct paddy purchasing expenses 5,651,517Paddy purchasing advertising expenses 974,385Weighing charges 410,250Stores Rent expenses 586,500Polysacks bags expenses 141,888,188Paddy purchasing document expenses 1,604,013

244,410,496 122,364,010

271



2010 2009NOTE 04 - RICE SALES ACCOUNT

Rs. Rs.Rice Sales 72,566,049 -Less: Direct Matterial cost - Paddy (57,055,776) -

15,510,273 -

Less: Direct cost Milling charges (6,582,965) - Transport charges (1,927,704) - Turnover Tax (725,660) - Loan Interest charges (1,521,487) - Bank O/D charges (1,595,189) -Profit on Rice Sales 3,157,266

NOTE 05 - OTHER INCOMERs. Rs.

Rent on Circuit Bungalows & Stores 5,231,300 5,485,780Dividends for lnvestments - 36,000Tender Deposit Income 636,000 21,000Service Charges Income 275,280 842,500Moisture Meters sales 131,473 1,755,900Fixed Deposit Interest 16,550,343 30,202,486Bank Interest Income 134,518 -Treasury Grants 35,000,000 -Polysacks bags sale Income 2,281,755 -Refund of Bank Garantees 24,450,000 -Others 686,001 17,886,567

85,376,669 56,230,233

NOTE 06 - SELLING & DISTRIBUTION COSTRs. Rs.

Vehicle Hire Charges 1,891,997 1,173,332Advertising 858,314 868,967Travelling and Subsistance 503,129 189,298Stores Insuarance - 502,150Transport charges 170,873 -Loss on WPP bag sales - 9,593,648

3,424,313 12,327,396

272


NOTES TO THE FINANCIAL STATEMENTS - YEAR ENDED 31 st DECEMBER 2010

2010 2009NOTE 07 - ADMINISTRATION EXPENSES

Rs. Rs.Salaries 17,030,183 7,980,697Cost of Living Allowance 6,212,600 2,301,183Other Allowance 896,159 356,080EPF 2,869,289 1,200,138ETF 695,032 305,046Overtime 1,162,573 212,282Directors Fees 522,000 323,500Audit Fees 50,000 57,500Legal Fees 170,501 154,600Casual labour charges 94,190 372,076Refreshment Charges 219,814 66,431Postage & Communication 89,230 51,857Printing & Stationery 1,208,255 911,749Fuel Chargers 3,451,674 1,544,874Repairs & Maintenance 1,089,892 588,210Consumables Items 1,420,895 448,405Valuation charges - 24,440Medical report charges 6,500 2,500Telephone 842,332 822,305Electricity 292,784 167,888Water 160,781 95,786Interview Fees - 27,090Translate Fees 38,820 3,350Stores rent expenses - 36,000Rent, Assessment tax & Water Expenses - 191,541Vehicle Insurance & License Fees 318,327 270,922Staff Welfare 147,506 153,277Staff Training & Related Expenses 225,295 137,935Security Charges 1,428,807 957,731Periodicals & Newspapers 42,665 35,790Vehicle Maintenance 1,059,090 903,140M/M & Scales Repairs - 343,432Depreciation - Buildings (Office) 2,676,850 2,660,921Depreciation - Motor Vehicles 1,293,546 252,900Depreciation - Furniture & Fittings 435,030 426,697Depreciation - Temporary Buildings - 7,920Depreciation - Moisture Meters 556,308 -

46,706,929 24,396,191

273



2010 2009NOTE 08 - OTHER EXPENSES

Rs. Rs.Bank Charges 112,168 55,467Dayata Kirula expenses 161,600 -Other Expenses 1,265,671 210,619

1,539,439 266,086

NOTE 09 - FINANCE COSTRs. Rs.

Loan Interest Charges - BOC 46,116,869 - - PB 29,219,746 - - RDB 7,417,724 - - NSB 5,356,046 -Bank OD Interest 61,826,718 -Debit tax 3,280,917 -Interest Expenses - Farmer's Trust Fund 6,796,234 10,010,959

160,014,253 10,010,959

276



2010 2009Note 13

OTHER RECEIVABLE Rs. Rs.

Accrued Stores Rent 342,000 849,600Accrued F/D Interest 987,674 -W.H.T. Receivable 3,020,249 3,020,249Receivable from CWE (for rice sales) 72,566,049 -Receivable from SLAPMA 35,000 35,000Receivable from Food Department (for Rice) 10,591,838 10,591,838

87,542,809 14,496,687

Note 14

ADVANCES Rs. Rs.

Festival Advance 96,000 21,000Advances for capital expenses 3,237,727 4,614,513Unsettled Sub Imprest 12,123 -Unsettled petty cash balances - Polonnaruwa Region 527 - South Region 4,846 - North Western Region 51 - Anuradhapura Region 1 34Advances - Polonnaruwa - 100,000 - Hambantota - 2 - Kurunagala - 2,503 - R.P.M. System "B" 795,578 - - Co. Wholesale Establishment 3,000,000 - - Lanka Sathosa Limited 1,000,000 - - Commissioner of Co-operative Development 9,000,000 - - Asst. Commissioner of Co-Operative Development -Polonnaruwa 6,700,000 -

-Asst. Commissioner of Co-Operative Development -Anuradhapura 300,000 -24,146,852 4,738,052

Note 15

UNECONOMIC ASSETS 2010 2009

Work in Progress US Aid 5,833,341 5,833,341Work in Prgress PMB Mills 100,000 100,000Work in Progress PMB Stores 76,550 76,550Debtors (Schedule No. 02) 477,432,325 477,432,325Cash Reimbrustment 3,327 3,327Deposits for Services 2,079,664 2,079,664Goods in Transit 2,906,718 2,906,718

277

Stamp Reimbursment - Regional Offices 5,284 5,284People's Bank - Deposits 65,576 65,576Investment - Rajarata Food Grain Processing Co. Ltd 1,032,900 1,032,900Accrued Revenues 41,767,890 41,767,890Pre payments 1,282,301 1,282,301Terrorist Abductons - Assets 80,995,173 80,995,173Suspense - General 1,652,925 1,652,925Motor Vehicle Loan 39,171 39,171Distress Loan 811,405 811,405Festival Advance 107,171 107,171Travelling Advance 80,887 80,887Flood Advance 22,037 22,037Special Salary Advance 3,200 3,200Special Loan Advance 421,440 421,440Return cheques 872,169 872,169Wages Advance 17,255 17,255Advances 6,518,662 6,518,662Machinery Spareparts & Others 3,523,309 3,523,309Gunny Bags 1,175,830 1,175,830Cash in Hand - Head Office (Schedule No. 03) 28,501 28,501Cash in Hand - Paddy Mills Complex (Schedule No. 04 ) 27,552 27,552Cash in Hand - District Offices (Schedule No. 05) 22,773 22,773People's Bank - Head Quarters 1320100318 7,559 7,559People's Bank - Foreign Branch 5801 94,552 94,552People's Bank - Badulla 472 1,602 1,602People's Bank - Badulla 123 1,251 1,251People's Bank - Maradana 120 22,565 22,565People's Bank - Trincomalee 511 9,925 9,925Bank of Ceylon - Badulla 888 50 50People's Bank - Head Quarters 1-499-944-0055 3,040,037 3,040,037People's Bank - Head Quarters 6-600-102-573 29,440 29,440

632,112,315 632,112,315

Note 16

CASH & CASH EQUIVALENTS Rs. Rs.

Bank of Ceylon - Rajagiriya 3270933 4,141,946 56,228Bank of Ceylon - Battaramulla 6662403 3,473,548 -Bank of Ceylon - Rajagiriya 7723940 - 304,081,373Bank of Ceylon - Rajagiriya 7768187 524,524 118,023Bank of Ceylon - Rajagiriya 7767985 1,391,303 289,111Bank of Ceylon - Rajagiriya 7768144 2,324,513 542,776Bank of Ceylon - Rajagiriya 7768265 445,594 85,432Bank of Ceylon - Rajagiriya 7768246 660,129 223,532People's Bank - Union Place 014-1-001-8-0002717 47,362 -

13,008,919 305,396,474

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Note 17 2010 2009FUNDS Rs. Rs.Foreign Aid 142,743,523 142,743,523Value of Assets taken over from CAS,RVDB,MDB 63,553,817 63,553,817Development Reserve 11,509,728 11,509,728Common Agricultural Fund 8,800,000 8,800,000

226,607,067 226,607,067

Note 18CREDITORS Rs. Rs.Payable to Treasury (Reg. paddy purchase) 1,300,000,000 310,000,000Loans - Bank of Ceylon 2,250,000,000 - - People's Bank 1,496,960,318 - - National Savings Bank 267,802,282 - - Regional Development Bank 380,473,988 -Other Creditors - -

5,695,236,588 310,000,000

Note 19OTHER PAYABLES Rs. Rs.Accrued Expenditure 11,421,477 10,382,641E.P.F. Payable 455,659 352,696E.T.F. Payable 68,349 52,904Payable to SLAPMA 184,658,970 178,157,940Commission & Transport Payable 7,510 7,510Payable to G.A. 26,016,640 26,016,640Salary abetments 5,227 11,427M.M. Refundable deposit 541,125 84,500Refundable Tender deposit 28,550 64,100Payable to Inland Revenue - W.H.T. - 5,805Unclaim Salaries 31,973 -Advances - Polonnaruwa Region 1,074,75 - - Ampara Region 423,016 - - North Western Region 129,243 -Pre Receipts 5,000 68,000Other Deposits - Refundable 240,000 240,000

225,107,454 215,444,163

Note 20PROVISIONS Rs. Rs.Provision for Paddy & Bag sales - 33,400,000Provision for Turn over Tax 19,355,269 17,226,094Provision for Driage - 3% 48,633,832 48,633,832Provision for Milling charges 6,582,965 -Provision for Transport charges 1,927,704 -Provision for Bank Interest 71,138,721 -

147,638,492 99,259,925

279



Note 21 2010 2009RETIREMENT BENEFIT OBLIGATIONS (GRATUITY) Rs. Rs.Balance at the beginning of the year 2,787,005 3,766,802Provision made during the year - -

2,787,005 3,766,802Payments made during the year (62,388) (979,797)Balance at the end of the year 2,724,617 2,787,005

Note 22Uneconomic Liabilities Rs. Rs.Terrorist Abductions - Depreciation 768,460 768,460Accured expenditure 188,055,987 188,055,987E.P.F. Payable 533,034 33.034Pre Receipts 4,187,090 4,187,090Deposits paddy 8,671,853 8,671,853Return cheques - Meethotamulla 4,566 4566Deposits for sale 2,198,646 2,198,646Security Deposite 218,423 218,423Security Deposite - Contractors & Suppliers 1,752,565 1,752,565Tender Deposit 1,726,209 1,726,209Retention 2,701,282 2,701,282Unpaid Salaries 1,685,216 1,685,216Unpaid Wages 3,350 3,350Cancelled cheques 549,785 549,785Other Deposits 9,474,713 9,414,713Rice Sale con. A/C 38,135 38,135Suspense - Salary & Advances 1,043,458 1,043,458People's Bank - Rathnapura 267 14,725 14,725People's Bank - Trincomalee 502 0 0Other Creditors (Schedule No. 01) 28,518,712 28,518,887Stock adjustment 2,279,071 2,279,071Refinancing A/C People's Bank 1,639,814,151 1,639,814,151Refinancing A/C People's Bank 204,776,492 204,776,492Refinancing A/C Bank of Ceylon 3,041,049 3,041,049Provision for Bad Debtors 10,028,674 10,028,674Treasury on A/C of compensation 6,119,550 6,119,550

2,118,205,195 2,118,205,370

Note 23BANK OVERDRAFT Rs. Rs.Bank of Ceylon - Rajagiriya 7723940 160,853 -Bank of Ceylon - Rajagiriya 70639454 91,878,123 -

92,038,976

280



Note - 24

Following accounts erroneously Debited to the Investment account, It was corrected and transfer tothe Debtors account.

Rs.Palmyraha Development Board 700,000.00C-Nor 1,000,000.00Cashew Co-operation 3,500,000.00

Note - 25

PADDY PURCHASING - MAHA SEASON 09/2010 & YALA SEASON 2010

A separate account had been opened for this operation at Bank of Ceylon Rajagiriya (A/C No. 7723940)in addition to the main account maintain at the same bank (A/C No. 3270933)

Paddy has been Purchased from the farmers of the following major paddy production districts.

PolonnaruwaAmparaAnuradhapuraHambantotaKurunagala

Note - 26

PROPERTY, PLANT & EQUIPMENTS

The following assets although appearing under property, plant & equipments, the ownership, value andexistence cannot be established due to non availability of documents.

Land & Buildings PolysealersPlant & Machinery Temporary BuildingsFumigation Equipments Fogging MachinesDunnages Books & MapsWeighing Machines Moisture MetersElectrical, Telephone & Fittings Laboratory EquipmentsBicycles Open air storage covers

Note - 27

There are 04 cases file against Paddy Marketing Board and the 01 case file by Paddy MarketingBoard.

290


Schedule No. 03

Cash in Hand Rs.Head Office - Finance Division 25,001

- Administration Division 2,000- Stores 1,500

28,501

Schedule No - 04

Cash in Hand Rs.P. M. B. Mills & Stores

Anuradhapura 2,000Chunnakam 1,000Denuwara 500Higurakgoda 500Inginiyagala 1,000Kalawewa 1,000Kandalama 500Kachchigala 1,936Kantale - 2 2,000Medawachchiya 1,000Maho 1,000Moraketiya (1,250)Nikaweratiya 1,000Pallewatta 500Polonnaruwa 6,512Weeramuna 7,873Lunugamwehera 481

27,552

Schedule No. 05

Cash in Hand Rs.Regional Office

Ampara 1,200Badulla 2,000Batticalo 1,500Western 561Kandy 3,500Kurunagala 1,500Kilinochchi 2,000Polonnaruwa 5,797Tangalle 3,100Trincomalee 1,415Mannar 200

22,773

291

Auditor General’s report made in pursuance with the clause 14 (2C) ofthe Finance Act No. 38 of 1971 on the finance statements of the Paddy

Marketing Board for the year ended by 31st December 2010.Finance statements of the Paddy Marketing Board for the year ended by 31st December 2010

was audited under my command in accordance with the clause 13 (1) of the Finance Act No. 38 of1971 and in line with the rules and regulations included in the clause 154(1) of the constitution of theDemocratic Socialist Republic of Sri Lanka. My view and observations I intend to declare with theannual report of the PMB in pursuance to the clause 14(2C) of the Finance Act are also given in thisreport.

1.2 Responsibility of the management of the finance statement.

It is the responsibility of the Management to prepare the financial statement in accordance withthe Sri Lanka accounting standards and to submit them in a reasonable manner. The management isresponsible to prepare the finance statement without stating incorrect facts which lead to frauds andoffences, planning, implementation and maintaining internal management for reasonable presentation,selection and application of suitable accounting policies and preparing accounting estimates in timelyjustifiable manner.

1.3. Subject matter for auditing and base for the opinion

It is my responsibility to express my opinion on the finance statements based on my observations.Auditors’ opinion, clarification and discoveries included in this report are based on the review of therelevant finance statements and the verifications for samples of deals. I have done the review and theverification on the samples of deals as much as possible with the staff, time limitations and other resourcesthat I have received. The auditing process on the finance statements has been carried out in accordancewith the Sri Lanka auditing standards so as to confirm whether the statements are free of false information.Verifications on the samples of evidence that help to confirm the values and discoveries in the financestatements; accounting policies applied by the management in preparing the finance statements andimportant estimates and overall evaluation of the finance statements have also been included in theauditing.

According to my utmost knowledge and belief I have gathered adequate information and clarificationsfor the auditing process. Accordingly, I am confident on the fact that my auditing process providessufficient base to prove my opinion. Sub clauses 3 and 4 of the clause 13 of the Finance Act No. 38 of1971 grants discretionary powers to the Attorney General to measure the subject matter and thequantity of the auditing.

292

1.4 Re-activation of the operational work of the Paddy Marketing Board.

It has been suggested by the proposal number 12(D) of the budget speech 2006 to re-establishthe PMB with a basic capital of 2,000 million rupees. Accordingly, the relevant cabinet decision wasdeclared on 25th July 2007. Thus, the operations of the PMB have been re-commenced from theSeptember 2008.

2. Finance statements

2.1 Opinion

I am unable to express an opinion for the finance statement of the PMB for the reviewed year ended by31st December 2010 due to the views and observations stated in the report.

2.2 Views on the finance statement

2.2.1 Submission of finance statements

As mentioned in the 6.5.1 paragraph of the circular number PED 12 dated 2nd June 2003, the financestatements for each year should be submitted for auditing within 60 days of the end of the relevantfinance year. However, finance statement of the year 2010 had been submitted fro auditing about 8months later on 27th October 2011.

2.2.2 None consistence with the Sri Lanka Accounting Standards

Following accounting standards have not been followed

(A) Funds have not been allocated for gratuity allowance as mentioned in Sri Lanka AccountingStandards – 16

(B) I. According to S.L.A.S – 18 lands and buildings should be accounted separately. However,lands and buildings amounting to the capital of Rs.290,646,124/- have been accounted asone single balance. Annual 2.5 percent depreciation has been granted on this capital.

II. Fixed assets worth Rs.24,513,343/- have been totally depreciated and removed fromusage. However, measures have not been taken to omit the assets from the inventories or tobe revealed in the finance statements

2.2.3Accounting lapses

Following observations have been made.

(A) 3 condemned motor vehicles had been auctioned in the previous year and instead of theauctioned value of the vehicles the estimated value of Rs.1,725,000/- had been credited to themotor vehicles account. However, this fault had not been corrected even in the current year.

(B) Machinery, equipment, other items worth Rs.22,305,694/- have not been depreciated up tothe current year since the re-establishment of the PMB in 2008.

(C) The fixed assets of rupees Rs.19,770,605/- including motor cars, office equipments, computersand computer accessories, furniture, moisture meters and other items received by Sri LankaAgri Products Marketing Authority have not been entered in the accounts.

(D) According to the agreements made with private rice mill owners, paddy stocks had beenissued to them to be milled in to rice. Out of the stocks some of expired rice and the stocks thatshould be handed over back to the board amounting to

Rs. 28,767,075/- have not been accounted as debtors. Instead, the value of the paddy stockshas been accented as mobile stocks.

(E) Bad debt and doubtful debts on the balance of debt amounting to Rs. 526,751,777/- by 31st

December 2010 have not been allocated.

293

2.2.4 Receivable and payable accounts

Following observations were made

(A) By December 31st of the reviewed year, there was Rs.3,020,249/- un-cleared withholding taxwith has accumulated for over 5 years.

(B) A credit total of 83,157,887 rupees for selling paddy to the CWE and department of food thatfell short for over one to 2 years has not been recovered.

(C) A sum of Rs.20,000,000/- has been paid to the CWE, Lanka Sathosa Limited and theCommissioner of Cooperative limited as advance payments for transport of purchased paddystocks in the Yala season of the reviewed year. However, the amount has not been recoveredand entered in the accounts.

(D) A sum of Rs.795,578/- has been paid to the Mahaweli Authority as an advance payment forlabour charges and other expenses by 31st December of the reviewed year. However, theamount has not been recovered and entered in the accounts.

(E) For renovation of an official quarters, a circuit bungalow and 3 warehouses; CWE,Commissioner of Agrarian Services, Sri Lanka Mahaweli Authority and the Regional Managerof the PMB have been paid with Rs.1,199,045/-, Rs.1,384,000/-, Rs.294,232/- andRs.360,450/- respectively (A total of Rs.3,237,727/-) as advance payments. However, theamount has not been recovered and entered in the final accounts even by 31 December of thereviewed year.

(F) Although the officials of the Mahaweli Authority ‘C’ zone have purchased paddy stocks worthrupees 103,381,776, they have only handed over stocks worth rupees 102,946,494 to theboard. Thus, a shortage of stocks worth rupees 435,292 has not been recovered.

(G) 44 buildings owned by the Board including ware houses, milling complexes, offices and quartershave been used by external parties for over five years and no rental has been charged for them.A rental Rs. 5,143,995 for another 19 more buildings those were given on lease has to becharged by 31st December of the reviewed year.

(H) Following matters of the existing accounts have not been cleared for over five years. Theyhave been branded as non economic assets and liabilities without recovering or balancing theaccounts.

294

Account details No. of Value Theaccounts accounts

branded as

}

Sales income of paddy rice agri 91 477,432,325Crops and other productsWork being in progress, mobile 08 96,263,846Stocks, assets, robbed by terroristsUncertain accounts, machinery spareparts gunny bags and

money owed 37 52,609,373Loans & advanced payment for employees 08 1,502,567Balance of currency 09 1,265,670

153 629,073,781Deposit account- sales of paddy” 07 26,743,691secured, tenders,Other deposits and retentionsPayable expenses & 78 217,338,006Receipt in advanceControl accounts 24 20,272,183Payable loans & 04 1,853,765,967advance

113 2,118,119,847

Non economic mobile assets

Non economic mobile assets

2.2.5 Non availability of evidence for auditing

Account balances such as fixed assets a total of Rs. 121,217,381 paddy Soyabean and stocks of polysack bags a total of Rs. 549,396,671 mobile stock a totalof Rs. 130,566,434 rice marketing debtors, a total of Rs. 83,157,887 credits atotal of 56,77,359,875 unused liabilities a total of 2,118,205,195 unused assets atotal of 632,112,315 funds a total of 226,607,067 could not be satisfactorilyverified or accepted since the relevant documents such as right deeds, stockinventories credit/debit lists, certificates for balance and many other importantdocuments have not been submitted.

The Chairman informed me that since the relevant documents are not available acommittee will be appointed and future action will be taken according to therecommendations made by the committee.

} Noneconomicmobile assets

} Noneconomicmobile assets

295

2.2.6 Non consistence with laws rules regulations and management decision.

observed events of non consistence are given below.

Direction to laws, rules Non consistenceand managementdecisions

A. financial regulationcode of thedemocratic SocialistRepublic of Sri Lanka

i. FR134(3) Report of an internal auditing has not been submittedto the Attorney General.

ii. FR387 Bank overdraft have been obtained without approval

B. Cabinet decisionnumber17/1184./315/31dated 25 July 2008

C. State enterprisecircular No. PED/12dated 2nd June 2003

i. Paragraph 6.5.1 Draft annual report has not been forwarded alongwith the finance statements

ii. Paragraph 6.5.1 The Auditing committee has not been appointed

D. TreasurySecretary’s statefinance circular No.IAI 2002/02 dated28th Nov 2002 andFR 756

3. Review of finance and operations

3.1 Review of finance

3.1.1 Finance results

According to the submitted finance statements the Board has experienced anoperational loss of Rs. 346,747,034 during the review year. However, the Boardhad gained an operation profit of Rs. 150,717,260 in the previous year. Accordingly,there is decline of Rs. 497,464,294 in the financial result. Although the other

All assets and liabilities of the Sri Lanka AgriProducts Marketing Authority were to be acquiredby the Paddy Marketing Board when the Authoritywas liquidated. However, only the assets such asfixed deposits of Rs. 184,658,970 saving deposits,petty cash balances and employees advancepayments have been acquired

No action has been taken to acquire rest of theassets of the authority and carryout the liquidationactivities until 31st December 2010.

A total of fixed assets of Rs. 121,217,381 and atotal of stocks of Rs. 56,26,491,938 have not beenchecked for over period of five years.

296

revenues have increased by Rs. 32,303,702 and the operational gross profit hasincreased by Rs. 243,037,208 The operationa costs have increased by Rs.286,730,788. This was the cause for the decline.

Various stages of the fiancé result for the reviewed year and the previous year aregiven below.

Year ended by 31st December

2010 2009

Rs. Rs.

(i) Operational gross profit 20,814,460 263,851,668

(ii) Net profit /(loss) before tax (346,747,034) 150,717,260

(iii) The year’s net profit /(loss) (346,747,034) 150,717,260

3.2 Review of operationsAchievement of Task

Following observations are made

(A) Although it has been estimated to purchase 280,000 metric tons of paddy at a costof 8,120 million rupees under the action plan, only 188,101 metric tons of paddy ata cost of 5,339 million rupees have been purchased. That was only 67% of thetargeted amount. 49% growth is shown when compared with that of the previousyear.

(B) According to clauses 3 & 10 of the PMB at No. 14 of 1971, the Board should havetaken action to conduct paddy and rice milling, trashing and manufacturing businessesand to register private mills. But no action was taken in this regard.

3.3 Identified losses

Following observations are made

(A) Value of paddy purchase in the reviewed year was Rs. 5,410,611,685 according tothe payments made by the current accounts of the banks. It was Rs. 5,361,024,536according to the reports of stock balances at the warehouses. Thus, a shortage ofstocks worth Rs. 49,587,149 was noticed. This shortage was staged in the financestatement as mobile assets. The assumption that the shortage could be a fraud cannotbe overlooked.

(B) The Board has experienced a loss of Rs. 80,226,713 as sum of its assets wererobbed five years ago. No action has been taken so far in this regard.

(C) Stock shortage were Rs. 97,164,100 and stock balance worth Rs’ 2,279,071both a total of Rs. 99,443,171 have been maintained for over five years.

(D) A total of unbanked receipts worth Rs.405,050 has been maintained for over fiveyears.

(E) A sum of Rs. 61,826,718 has been paid as interests for bank overdraft during thereviewed year.

297

3.4 Budget control

The budget report has not been prepared so as to show the revenue estimates and estimatedfinancial flow in accordance with the paragraph 5.2.1 of state enterprise department circularNo. PED/12 dated 2nd June 2003. Classification of expenses in the budget was not in linewith the classification included in the finance statements. Therefore, it was unable to countthe difference between the estimated expenses and the real expenses. It was also unableto conform the fact that the budget report has been utilized as a productive managementcontrol factor.

4. Systems and control

The chairman of the Board was informed from time to time regarding the systems and controllapses as observed in the auditing. Special attention should be focused on the flowingadministrative sectors.

(A) Accounting

(B) Maintaining books, reports and practical documents.

(C) Acquisition of rights of assets

(D) Unidentified assets, liabilities, receivable and payable balances.

(E) Acquisition of assets and liabilities received by the Agri Marketing Authority.

(F) Internal auditing

(G) Budget control

(H) Accounts balance of non economic assets and liabilities

H.A.S. SamaraveeraAuditor General

298

Paddy Marketing BoardNo. 330Union PlaceColombo 0201.10.2012

Auditor General

Auditor General’s Department

Chairman’s views on the report submitted by the Auditor General, regarding thefinance statements of the Paddy Marketing Board for the year ended by 31st

December 2010.

The Paddy Marketing Board has been established under the Parliamentary Act no. 14 of year 1971.Its activities are carried out with a limited staff and resources while having a direct supervision of all thezones set up covering the entire island. I would like to mention that although my staff is limited, purchasingof paddy has been carried out covering all parts of the country using the available storage facilitieswhich are not up to the accepted standards.

2.2 Views on financial statements

2.2.1 Not being confirmative to the Sri Lankan Accounting Standards

(a) No more allocations were made as the service of the present staff has not

exceeded 5 years of service and the provisions allocated in last year had exceededRs. 5 million.

(b) (i) During year 2000-2008 the Board was controlled by a liquidator and the olddocuments have not been handed over to us properly. Therefore, it is difficultto recognize land and buildings separately. Thus I would like to inform that areevaluation will take place and they will be entered to the accounts separately.

(ii) The Board does not have the documents for this purpose and I kindly requestyou to correct the balance by appointing a committee.

2.2.2. Shortcomings in accounting

(a) As the documents required to obtain information regarding these vehicles areunavailable, the estimated value has been entered to motor vehicle account.

(b) Since the required documents are unavailable depreciation was not calculated.

(c) A note has been made to enter these items to the list of assets.

(d) As the rice has been handed over for production and it is not considered as asell on credit, it has been stated as a transitional stock.

(e) Funded debit has not been allocated since bad debit is not expected.

2.2.3 Receivable and Payable accounts

(a) The balance has been calculated according to the tax retain law implemented accordingto the government’s policies.

(b) I would like to inform that measures have already been taken to charge this money.

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(c) The advances given to the relevant institutions and measures taken are as follows.

C.W.E. 3,000,000

Lanka Sathosa 1,000,000

Coop. Dev. Com. Dept 9,000,000

Coop. Dev. Asist. Com. Dept - Polonnaruwa 600,000

Coop. Dev. Asist. Com. Dept - A’pura 300,000

20,000,000

(d), (e) Required documents to settle these advances have not been sent in 2010 andcerebration letters have been posted.

(f) Necessary measures have been taken to settle them after obtaining required documents.

(g) The Paddy Marketing Board does not have none of the relevant documents to clearthese accounts and the balance will be cleared in the future according to the decisionstaken by the specialized committee.

2.2.4 Unavailability of evidence for audit

The balance will be cleared in the future according to the decisions taken by the specializedcommittee since the relevant documents are unavailable.

2.2.5 Not being confirmative to laws, regulations and decisions of the management

(a) (i) An internal audit department was not available till year 2010. Although a request hasbeen made from the Department of Management Services to make a recruitment in thisregard approval has not yet been granted.

(ii) Purchasing of paddy from the farmers should be carried out immediately and paymentsshould be made when the paddy is delivered if not the farmers will tend to stage protests.Thus the Bank has granted an overdraft to make payments to farmers till the funds areapproved.

(b) Mentioned assets are being looked into and notes have been made to include them in thelist of assets.

(c) (i) Measures have been taken to compile the 2010 annual report

(ii) Internal audit committees will be appointed as soon as an internal auditor is appointed.

(d) Measures will be taken with regard to the mentioned fixed assets and inventory accordingto the decisions of the specialized committee appointed to look into the balance of oldaccounts of the paddy marketing board.

3. Finance and Operation review

3.1 Review of finance3.1.1 Paddy Marketing Board has been established with no intention of earning profit. It

only purchase paddy on the certified price given by the government. The Boardhas to bare considerable cost to collect and to maintain inventory. Furthermore,the Board has to keep a buffer stock to maintain paddy prices at a stable level.Therefore, the Board has no opportunity to sell paddy at a higher price. Furthermore,the Board has to provide paddy at a lower price to C.W.E and Food Department.Thus, it should be mentioned the PMB has no ability to earn profit.

Cerebration lettershave been sent.

To be settled inyear 2011

}

}

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3.2 Review of operations

(a) The amount of Rs. 8,120 million is only an estimate and maximum stock of paddy hasbeen purchased from the provisions granted by the government and money of thePMB.

(b) Registering of private mills is now being carried out.

3.3. Identified losses

(a) This loss has been minimized to Rs.49 million by checking every receipt of the paddypurchasing programme. Furthermore, the rest of the loss has been informed to relevantdistrict managers and are being recovered. The matter will be further look into after aninternal audit unit is established.

(b)(c)(d) A committee has been appointed for this matter and future measures will be takenaccording to the recommendations made by it.

(e) Purchasing of paddy from the farmers should be carried out immediately and paymentsshould be made when the paddy is delivered if not the farmers will tend to stage protests.Thus the Bank has granted an overdraft to make payments to farmers till the funds areapproved and interest is being paid for it.

3.4 Balancing of the budget

Measures have been taken to categorize budget documents and rest of the expenditure.

4. System and Control

Measures have been taken to manage system and control properly which were pointedout by the audit.

K.B. JayasingheChairmanPaddy Marketing Board

Documents

203-258...Despite all these difficulties the PMB has been able to purchase 70,771 metric tons of the island’s paddy harvest of the Maha season and 111,756 metric tons of the Yala