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

¶ 01 Hon. Deputy Chairperson of Committees, it is said here that institutions are loss-making and the economy has collapsed. We must acknowledge: a war erupted, affecting the whole world and creating exchange rate pressures everywhere. Apart from that, there is no unique problem. The Government is managing these challenges and moving well, with economic growth resuming from a point where growth was negative and reserves were at zero. We are addressing people’s issues, providing relief, and launching major projects. Misleading propaganda needs correction.

¶ 02 Recently a TV channel aired a farmer’s voice clip claiming fertilizer money was not received. But the farmer in question had not cultivated; the local organization in Anuradhapura, Kaagama, confirmed that those who cultivated received funds. We have a targeted program; we do not pay for uncultivated land.

¶ 03 When we took office, the fertilizer subsidy for two hectares was Rs. 30,000; now it is Rs. 60,000—doubled. So far, 571,025 farmers have been credited; funds for 405,000 hectares have been paid, with about 51,000 hectares remaining, disbursed according to planting windows. Different regions sow at different times; payments follow that schedule.

¶ 04 Amid global supply issues, we decided—with the President’s approval and after discussion with Minister Lal Kantha—to supply 65 percent of fertilizer needs at old, subsidized rates through Agrarian Service Centres, enabling purchases at Rs. 9,900–10,200 per bag. We procured from companies at 65 percent of cost for onward distribution; we could not cover 100 percent, but this plan was agreed with national farmer leaders.

¶ 05 From the last vessel, we took 7,100 tons. The Government buys at around Rs. 17,000 per bag and sells to farmers at Rs. 10,200, plus gives Rs. 60,000 per two hectares—Rs. 120,000 per year for two hectares. Some lots were procured at Rs. 15,940 per bag, others around Rs. 13,700; all sold at Rs. 10,200 to farmers. We also reimburse additional retail purchases. Even intercropping on paddy lands is now eligible for fertilizer assistance; earlier it was not.

¶ 06 On paddy prices: when we took office, unit production cost was Rs. 99.75 per kg and the set price was Rs. 105, yielding only Rs. 5.25 per kg. The State then did not purchase; stocks were left to vermin. We calculated actual costs and reduced them by around Rs. 10 per kg in the first season via efficiencies, then applied our pledge—add 30 percent to production cost—to set the guaranteed price at Rs. 120 per kg for Nadu. We opened stores and purchased until April 9–10, even as Yala began. Current indicative prices: Nadu Rs. 120, Samba Rs. 130, Keeri Samba Rs. 140. We will re-open purchases when the next harvest comes, update costs, and set prices accordingly. In the past, fertilizer hit Rs. 40,000 per bag; farmers had to sell at Rs. 80–90 per kg. Do not distort facts; we are ready to respond.

¶ 07 We are also preparing for potential El Niño/La Niña impacts as climate scientists warn, focusing on food security. Prices fluctuate with demand and supply; these are temporary. We must secure food and prepare for climate-related risks. Let us avoid politicizing these matters. I convey this assurance to our farmers.

¶ 08 Thank you.