Fetiliser subsidy for all food crops; Move to cost billions

On the instructions of President Mahinda Rajapaksa, the Government has decided to give fertiliser subsidies for all food crops, effective from yesterday.

A 50 kg. bag of fertiliser for paddy will continue to be given at the prevailing price of Rs. 350. For all other crops, an unmixed fertiliser bag of 50 kgs will be given at a subsidised price of Rs. 1200, while a mixed fertiliser bag of the same weight will be priced at Rs. 1300.

Previously the 50 kg. bag of fertiliser was available at a price ranging from Rs. 3500 to Rs. 4000.

Government sources said this fertiliser will be available freely at all state and private sector fertiliser outlets without the necessity of filling out any forms.  

This decision was arrived at a meeting held by the Secretary to the Finance and Planning Ministry Dr. P.B. Jayasundera.

Under this scheme the fertiliser subsidy was available only for paddy and some crops.  But this will be available for all crops with immediate effect.

The government expenditure on this subsidy will be Rs. 40,000 million, Government sources said.