The Hon. (Prof.) L.M. Abeywickrama

¶ 01 Hon. Speaker, there is public debate on imposing a Special Commodity Levy of Rs. 50 on big onions and Rs. 80 on potatoes. Looking at production, there is a large cost gap between farmers in India, Pakistan and China and our farmers. In Sri Lanka’s Welimada and similar areas, cost of producing a kilo of potatoes is about Rs. 200, while in India it is around Rs. 40. For big onions here, it is about Rs. 125 per kilo, whereas in India it can be as low as Rs. 25. Reasons include climate—low humidity regions in India, Pakistan, China suit these crops—while Sri Lanka’s susceptibility to fungal diseases forces higher agro-chemical use. Soil advantages in Haryana and Punjab enable better yields. Our producers also incur high seed costs—around 50% of potato production cost goes to imported seed from the Netherlands and Australia. Past governments neglected domestic seed production, forcing imports.

¶ 02 Those countries also heavily subsidize inputs like energy. Therefore, our farmers face higher costs. Yet many here cultivate onions and potatoes. We must protect them; otherwise we will spend a large share of the Budget on imports and remain dependent, harming the economy. Hence, we propose to maintain the SCL of Rs. 50 on big onions and Rs. 80 on potatoes to protect farmers. This is not forever—we know para-tariffs must be phased out by 2030—but until then, we must shield and equip our farmers.

¶ 03 Large-scale production in Punjab and China yields lower unit costs; our smallholders need technology to reduce costs and modernize. The Department of Agriculture has allocated substantial funds this year for technology. We are establishing cold storage and warehousing to cut costs. Within two to three years—before 2030—we aim to make our farmers competitive with those in Punjab, Haryana, China and Pakistan by raising productivity and lowering costs.

¶ 04 Past neglect of agriculture and technology raised our costs. We will strengthen farmers now: continue these levies short-term while modernizing—developing local seed farms in Welimada, Bandarawela (first-generation potato seed) and in Dambulla (onion seed)—to cut seed costs. Through technology, producer groups, and cooperatives, we will aggregate small plots and enable use of modern machinery, reducing unit costs. We have started tech farms and allocated significant budgetary support for equipment.

¶ 05 These levies are a bridge we must not dismantle before parachutes are ready. Until 2030, keep them for two more years while arming farmers with technology and organization. As government revenue, these levies are not for waste or junkets; they will fund agricultural modernization, cold storage and warehousing. We invite the Opposition to support these efforts for their long-term benefits.

¶ 06 Thank you, Hon. Deputy Speaker.