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Finance Minister Ravi Karunanayake states that the Government has embarked on an ambitious plan to strengthen agriculture targeting the export market.
The Minister’s comment came at the ceremony to vest with people the largest granary warehouse complex of Sri Lanka constructed at Buttala, Moneragala.
Speaking further, the Minister said: “Twenty five percent of the country’s labour force are engaged in the agricultural sector. Therefore it is the responsibility of the Government to accord due priority to this sector in implementing the policies of the government. The President and the Prime Minister are making every effort to strengthen the agricultural sector. The prime objective of the Ministry of Finance is to channel the public funds to ensure maximum benefits to the people. Through every budget we are going to present a vision to the country.
“On 20 November 2015, we outlined the vision for the development of the country. It is evident from the Budget proposals what our priorities are. We all should rally round to build a new country. We must rid ourselves of dependent mentality and toil hard to create something new to achieve economic stability. Everybody knows that we had a record paddy harvest last season.”
“We are ready to deal with this bumper harvest in a positive manner. The Government has decided to mill the excess stocks and distribute them amongst Samurdhi beneficiaries. Approximately 10,000 tons can be distributed in a month among Samurdhi recipients. In addition, there is the possibility of selling about five tons to Government departments and hospitals,” Karunanayake continued.
“Accordingly, we can reduce nearly 200,000 tons of rice annually from the existing stocks. Action will also be taken to export some of the surplus stocks. Arrangements have already been put in place to export rice to countries like Indonesia, Ghana and Nigeria. As there are surplus stocks, discussions were held with the Prime Minister to increase the current tax imposed on imported rice. Already a tax of Rs.35 has been slapped on imported rice. It will be increased up to Rs. 50 from midnight today (31). This measure has been taken to protect the local paddy farmer.
“If priority is given to locally produced items, we can improve our balance of payment. Last year alone, the Government allocated Rs. 4.8 billion for the fertiliser subsidy and altogether the subsidies for the rice cultivation amounted to Rs. 8.4 billion. Can a government continue to bear such a huge expenditure? Everybody talks about strengthening agriculture. We have realised this. But a country cannot be developed through agriculture alone. Therefore we have to focus on other sectors as well while continuing to support the agricultural sector.”
Minister of Rural Economic Affairs P. Harrison, Minister of Public Administration Ranjith Madduma Bandara, Parliamentarian Ananda Kumarasiri and Ministry of Finance Secretary Dr. R.H.S. Samaratunga were in attendance at the opening ceremony together with senior officials of public sector institutions and the farmer community of the area.
