The Hon. K.D. Lal Kantha - Minister of Agriculture, Livestock, Land and Irrigation

¶ 01 Reply to the question raised by Hon. Ravi Karunanayake on 2025.09.11 under Standing Order 27(2):

¶ 02 The Government accepts that farmers must receive fair prices for paddy and consumers must have affordable rice. Accordingly, for Yala 2025, minimum purchase prices were determined by a committee of experienced officials appointed by the Secretary of the Ministry, calculating district-wise cost of production per kg and adding a 30% margin:

¶ 03 Minimum paddy procurement prices (14% or below moisture; 22% for standard where applicable): - Nadu: Rs. 120/kg (standard Nadu Rs. 102/kg) - Samba: Rs. 125/kg (standard Rs. 105/kg) - Keeri Samba: Rs. 132/kg (standard Rs. 112/kg)

¶ 04 The Paddy Marketing Board (PMB) operates 146 stores islandwide for direct standard paddy purchases at these prices. Additionally, via an interest-subsidized loan scheme, commercial banks lend to private sector buyers; the Department of Agrarian Development oversees private procurement at the set prices. Thus, fair prices to farmers are ensured.

¶ 05 As of 2025.09.17, PMB alone has procured 48,705.984 metric tons (district-wise progress placed in the Library). Market rice prices, previously controlled, have since fallen below the control price in many cases.

¶ 06 On varieties and pricing: Keeri Samba has higher processing losses and cost per kg than Nadu; traditionally Keeri Samba is priced higher. When the price gap narrows or reverses, Keeri Samba cultivation can become loss-making, influencing next-season varietal choices by farmers.

¶ 07 Department data show 2024/2025 Maha cultivation shares approximately: Nadu 77.45%, Samba 10.15%, Keeri Samba 10.5%, long-grain 0.4%, others 1.5%—not 90% Nadu as claimed elsewhere. With earlier good Nadu prices, its sown area rose, and Keeri Samba’s share fell slightly.

¶ 08 Rice imports are controlled via import permits; except for Basmati, other rice types are not currently being imported. If a domestic shortage arises and prices become unaffordable, the Food Policy and Security Committee may recommend imports with Cabinet approval to protect consumers.

¶ 09 Consumer protection is exercised by the Consumer Affairs Authority, including enforcement against unfair pricing and market abuses. Policy decisions are coordinated through the Food Policy and Security Committee.

¶ 10 Fertilizer and yields: As 99.92% of farmers use improved varieties, fertilizer shortages directly reduce yields. Urea distribution fell from 403,058 MT in 2020 to 215,255 MT in 2024 (a 46.6% drop). Yields fell from 4.5 MT/ha in 2020 to 3.0 MT/ha in 2022, recovering to 3.8 MT/ha in 2024.

¶ 11 Costs per acre: For Maha 2023/2024, fertilizer cost per acre was Rs. 46,890, dropping to Rs. 22,851 in Maha 2024/2025; total per-acre cost fell from Rs. 146,056 (2023) to Rs. 137,917 (2024). Urea declined from Rs. 461/kg (2023) to Rs. 177–180 (2024); MOP from Rs. 398 to Rs. 217; TSP from Rs. 256 to Rs. 244. Hence paddy cost per kg ranges Rs. 59.37–81.73, while the Government’s minimum purchase prices are Rs. 120–132, yielding Rs. 38–73 per kg margin to farmers.

¶ 12 When retail prices become unaffordable or unfairly elevated, the Ministry of Trade, Food Security and Cooperative Development intervenes via control prices, market monitoring, Lak Sathosa concessional sales, and cooperative wholesale centers.

¶ 13 All recommended improved varieties can yield over 200 bushels per acre (10 MT/ha) under best practice, with average potential around 73 bushels per acre. The Department has issued a full technology package (quality seed, balanced nutrition, water/weed/pest/disease management) and aligned policies to scale practical adoption. Long-term market development and value chain management underpin sustainable rice industry outcomes.

¶ 14 Sri Lanka’s per-capita rice consumption is about 114 kg/year, implying an annual national requirement of about 4.8 million MT; we are working toward reliably meeting this target.