The Hon. Namal Karunaratne - Deputy Minister of Agriculture and Livestock

¶ 01 Hon. Deputy Speaker, I will address three matters: paddy purchasing, fertilizer, and compensation.

¶ 02 On purchasing: when we assumed office, the recorded cost of production was said to be Rs. 99.75/kg and a “subsidized” indicative price Rs. 105. Yet the then Government did not purchase; stores were shut; farmers sold at throwaway prices. Under us, verified costs are lower for some varieties: e.g., Red Naadu at about Rs. 76/kg; White Naadu slightly higher. As Minister Lal Kantha noted, our platform was to set the minimum price at cost plus 30 percent. Accordingly, we set minimum prices—Rs. 120, 125, 132—for Naadu, Samba, Keeri Samba. We did not merely gazette prices; we reopened and rehabilitated stores. In the last Maha, farmers delivered about 59,000 MT to Government stores; as of yesterday, 43,891 MT in this Yala have been received.

¶ 03 The Opposition Leader himself acknowledged that under the chemical fertilizer ban, paddy production fell by 34 percent and fertilizer prices rose up to Rs. 40,000 per bag then; in such conditions, a Rs. 150+ cost per kg was plausible in that period. That was the context of earlier statements.

¶ 04 On fertilizer: our cash support is not ring-fenced to fertilizer alone; it can cover any cultivation need, and is paid in two tranches for flexibility. When we took office, the support per two hectares was Rs. 30,000; now it is Rs. 50,000. Further, based on decisions at cultivation meetings, we provided Rs. 30,000 per two hectares to farmers growing intercrops on fallow lands last Yala and again this Maha. Note: in our production-cost computations for minimum price, we have not credited these cash supports; if included, computed costs would be still lower. We have excluded them to avoid disadvantaging farmers.

¶ 05 On compensation: previously, no compensation was paid for the past Yala. We cleared arrears within our first month. For last Maha, 70,548 affected farmers over 83,255 acres were identified, and qualifying farmers have been paid; those payments are now completed.

¶ 06 Those who now lecture on compensation did not settle dues to farmers in Dambulla for big-onion seed, nor earlier potato purchases in Welimada, Uva Paranagama, Boralanda, Boragaswewa, etc. We had to protest to get partial payments made; many farmers still remain unpaid from that period.

¶ 07 Some advise us now to purchase at field level, increase supports, etc. If they had implemented these measures when in power, today’s issues would be smaller. The PMB had been run down—stores shut, staff shortages severe. We have started restorations; by next Maha, we will be further ahead. We are launching soil testing with a volunteer corps, upgrading seed production and varietal research suited to our environment, and pushing technology for higher yields on less land. Livestock development is also underway. We are moving to stabilize domestic food supply, solve market access, add value, reduce dollar outflows on food imports, and earn foreign exchange. With Ministers Lal Kantha and Susil Ranasinghe, our Secretaries and officials, we are implementing a scientific program. By the coming Maha, we will advance further. Constructive proposals are welcome as we revive an industry that was damaged.