Hon. K.V. Samantha Viddyarathna - Minister of Plantation and Community Infrastructure

¶ 01 Hon. Deputy Chairperson of Committees, today we debate an amendment to Excise Notification No. 962 under the Excise Ordinance and an Order brought to provide relief to our farmers. First, on the relief to farmers. I represent a district of farmers — Badulla — with many potato and big onion growers. At the outset, they struggled to sell harvest at fair prices. We recognize that. As a Government, we moved swiftly to change that and took decisions recently.

¶ 02 Some Opposition Members’ statements were incorrect — even the Opposition Leader’s — regarding these crops. When onion and potato harvesting begins, produce reaches the market gradually, not all at once. At that time, we discussed taxes. In the past, some imposed levies thinking of Ministers and their importer friends, not farmers — as with sugar reduced to 25 cents, allowing massive imports that harmed locals. We know our history.

¶ 03 When imposing such levies we must protect both farmers and consumers. The Food Policy and Security Committee discussed and the Cabinet approved these decisions. To provide relief to big onion and potato farmers, the levy on imported potatoes and big onions was imposed on 26.08.2025. Today we seek Parliamentary approval as a legal duty.

¶ 04 We have imposed the highest-ever levy on imported potatoes — Rs. 80 per kg — and Rs. 50 per kg on big onions. This is to protect domestic farmers. They are intelligent and will understand that this is not a problem to be solved in a day or two; many mafias control sectors in this country, and correcting that takes time.

¶ 05 Imported potatoes are still available retail at Rs. 180–190/kg, while domestic production cost is over Rs. 200/kg due to high seed, fertilizer and input costs. We once had seed farms — Seetha Eliya, Rahangala — but those who are now on the Opposition front bench destroyed that seed production, forcing us to import most seed potatoes. A sack of seed — Granola, Galina, Ranomi, Laparla — costs Rs. 35,000–40,000. If we do not ensure good prices, farmers cannot sustain cultivation.

¶ 06 I am pleased the current Agriculture Ministry has commenced high-tech tissue culture seed potato production. This season, 1.5 million foundation seed tubers will be distributed. A seed tuber costs about Rs. 8; the Government bears 50%, giving it to farmers at Rs. 4. These can be multiplied over four generations. We will scale up from 1.5 million to 6 million over three years. Under this model, a seed potato sack that costs Rs. 40,000 in the market can be produced for about Rs. 10,000 in cost.

¶ 07 We also decided at Cabinet and the Food Security Committee that merely imposing a levy is insufficient; the State will intervene to purchase potatoes and big onions. We decided to purchase red onions in Jaffna. Over the last five days, Sathosa alone purchased 61,305 kg of potatoes. With private sector partners Keells and Cargills, we agreed they would purchase directly from farmers without middlemen at Rs. 210/kg for potatoes and Rs. 130/kg for big onions. Now, some are buying big onions at Rs. 140/kg.

¶ 08 Therefore, I tell our farmers: go to Weligam-bogahakumbura, Keppetipola, Nuwara Eliya — we are ready to buy your potatoes at Rs. 210/kg. For big onion farmers: go to Thambuttegama, Dambulla — centres have been set up to buy at Rs. 140/kg; in Jaffna, red onions at Rs. 225/kg. We did not stop at levies; we put mechanisms in place.

¶ 09 Beyond that, we are enabling farmers to produce seed potatoes — at Boralanda livestock farm we have set up facilities with Korean support. We are rebuilding what was destroyed at Rahangala and Seetha Eliya. The agricultural sector fell because seed and fertilizer production were dismantled, and chemical fertilizers were removed abruptly, causing lasting damage. Now, with a President from a farming background, Anura Kumara Dissanayake, and with Minister Lal Kantha and others, we are striving to secure farmers’ future.

¶ 10 We had difficulties at the start to ensure good prices to big onion and potato farmers due to the adverse situation and dismantling of mafias. But we have short-, medium-, and long-term programmes ready.

¶ 11 On the consumer side, some spoke beyond the topic. The Trade Minister will also address. Some, together with smugglers, try to derail the country. When we act lawfully and methodically with plans, they are hurt; we will proceed steadily, introduce modern technology, ensure fair markets, and fulfill our promises.

¶ 12 Sri Lanka’s annual big onion requirement is 300,000 MT. Last year, domestic production was only 8,828 MT, per the Hector Kobbekaduwa Institute. Hence import dependency. Why have people moved away from these crops? Many reasons: destroying seed production, cutting fertilizer, banning chemicals. We must expand cultivated area, provide high-yield seed and fertilizer, and secure markets.

¶ 13 On the Excise Rules: we are not imposing new taxes; we are ensuring proper collection. People have paid for liquor; if producers do not remit duty, there is a problem. Some distilleries are linked to politicians — including those now in Opposition. We will not allow further evasion. When some pay properly, while large distilleries evade, we must fix legal weaknesses.

¶ 14 By 30 September, unpaid duty on arrack products alone was Rs. 10,555 million — equal to my Ministry’s 2025 capital budget. One company owes Rs. 6,775 million; another, Rs. 1,205 million. We are amending so that what was dragged for six months must be collected within one month, improving efficiency and fairness.

¶ 15 This is a people-centric reform. The levy protects farmers; all who eat rice and curries will endorse protecting our farmers. We will provide them more relief and value. We are ready to do this better. Thank you, Hon. Deputy Chairperson of Committees.