President plants Rs. 2,500 maximum price for fertiliser

• Rs. 25,000 to be credited to any bank account, more discussions at next Cabinet meeting 

• Increases taxes on imported potatoes and big onions with immediate effect  

Stepping in to balance the market, President Maithripala Sirisena yesterday issued instructions to fix a maximum price of Rs. 2,500 for a sack of 50kg fertiliser of any brand which is given to the farmers and also increased taxes on potatoes and big onions with immediate effect. 

Under his instructions the Finance Ministry increased the import tax for potatoes and big onions with effect from midnight yesterday. The President gave these instructions at a special meeting held at the Presidential Secretariat to discuss the issues faced by the farmers island-wide, a statement issued by his office said. 



President Maithripala Sirisena yesterday held a special meeting to discuss issues faced by farmers and to offer immediate relief. The meeting also reviewed the progress of the national food production program at divisional levels. Prime Minister Ranil Wickremesinghe, Agriculture Minister Duminda Dissanayake, Finance Minister Ravi Karunanayake and Ven. Athuraliye Rathana Thero were among those who participated at the meeting. 

President Sirisena imposed the fixed price after considering the difficulties of the farmers who had to purchase the 50 kg fertiliser packs for different prices including Rs. 2,750, Rs. 3,400 and Rs. 3,500. The assurance from the President came after protests by farmers that an alleged fertiliser shortage was triggered by traders ahead of a 2016 Budget decision coming into force from 1 March. 

Under the 2016 Budget, the Government decided to convert the subsidy to a cash allowance of Rs. 25,000 a year to encourage farmers to move away from using chemical fertilisers and to ensure that they are given good quality fertiliser, instead of the cheap kind that is often given on the subsidy.

The matter came under widespread debate at the last Cabinet’s Economic Management Committee at which a decision to temporarily revert to the old method for fertiliser was agreed upon until a proper formula is found. On Sunday representatives of unions drew the President’s attention to the issues they face with buying the paddy seeds and obtaining the fertiliser subsidy. 

The President further directed the officials to credit the fertiliser subsidy of Rs. 25,000, which is given to farmers per hectare, to any bank account given by the farmers. Expressing his views the President said that the Government would not take any decision which would make the farming community uncomfortable. He further stated that the aim of the Government was to prevent imposition of economic burdens on farmers.

President Sirisena promised to discuss issues related to the fertiliser subsidy and purchasing paddy in detail at the next Cabinet meeting, expected to be held on Wednesday, and pledged to take steps to solve their issues. (UJ)