The Hon. T.B. Sarath - Deputy Minister of Housing

¶ 01 Hon. Deputy Chair, during this Committee Stage debate on the Head of Expenditure of the Ministry of Agriculture, Livestock, Lands and Irrigation, I intend to raise several essential points.

¶ 02 From the Opposition side, it was said that due to recent flooding, compensation has still not been paid for 1,200 acres in Polonnaruwa. That information is incorrect. We have paid Rs. 103.2 million to 6,234 farmers for 9,058.9 acres.

¶ 03 For the first time in history, within a month of the damage, a Government has paid compensation like this. I challenge the Opposition to show any instance in the past 20 years when compensation was paid this way. We are leaders who fought farmers’ battles. We always demanded that when floods damaged a season, compensation should be paid even at the time of drought thereafter. We fought for years for compensation for cultivation damages. Therefore, while we consider some Opposition points, we will not accept falsehoods. Do not make false statements here for political gain.

¶ 04 On fair prices for paddy: when we, along with Namal Karunaratne and others, led farmer organizations in struggles, we asked only for Rs. 150 per kilo for one season, during which farmers spent Rs. 40,000 per fertilizer sack for production. Our consistent position was: determine production cost through the Hector Kobbekaduwa Institute, divide by three, and add one part as profit. For example, if cost is Rs. 90, dividing by three yields Rs. 30; add that to ensure a margin that secures the farmer’s livelihood. That is the minimum; more is welcome.

¶ 05 For this season, all relevant institutions, including Hector Kobbekaduwa Institute, have calculated the production cost of paddy at Rs. 87; let us say Rs. 90. One-third is Rs. 30; adding that, we have set the price at Rs. 120 as the minimum. Higher purchases by private sector are allowed; we do not obstruct them. For the first time, farmers say they are receiving their highest incomes this season. The Opposition will not be happy, but given current realities and Treasury constraints, we are providing the best possible price now.

¶ 06 On fertilizer subsidy: last season we disbursed nearly Rs. 18 billion, out of an allocation of Rs. 54 billion. For Yala, the extent is smaller; we have allocated Rs. 35 billion. If Rs. 54 billion was allocated and only Rs. 18 billion spent, we must investigate where the rest went. This season, we provided fertilizer subsidy to every paddy farmer. If only Rs. 18 billion was needed, we must find out for what the Rs. 54 billion was spent. Even the then Deputy Minister, Namal Karunaratne, should examine where that Rs. 54 billion went during his time.

¶ 07 Our main objective is that within the first three years we provide a pesticide-free meal to the public by transforming agriculture into a pesticide-free sector. Henceforth, when farmers apply insecticides, herbicides or fungicides, a knowledgeable officer must certify necessity—similar to a doctor’s prescription for medicine.

¶ 08 A major issue is seed. There is no proper institution for farmers to obtain certified, improved seed. Contrary to Opposition claims, we have commenced seed research at 29 seed farms. At Aralaganwila, Polonnaruwa, sowing for the next season has begun. We have allocated Rs. 1.2 billion for seed research. For the next season, we have made provisions to produce over 40,000 MT of paddy seed and over 700 MT of other seed types, and started work on new varieties. We have also allocated over Rs. 2,000 million to move agricultural products into value-added industries—with Rs. 600 million from the World Bank, Rs. 600 million from the IMF, and Rs. 1,200 million from this Budget.

¶ 09 We are also developing transport systems, ensuring fair market prices, introducing modern technology, building youth farmer enterprises, and strengthening farmer organizations and cooperatives, with funds allocated.

¶ 10 We currently import maize at over USD 120 million per year. Within the next two seasons we will meet national maize demand, with funds allocated and about 30,000 new hectares being prepared.

¶ 11 The majority of farmers brought this Government to power and sent genuine farmer leaders to this Parliament with great expectation. We state clearly: within the next five years, we will usher in a golden era for farmers, allocating required funds to ensure a safe meal for our 22 million people. I conclude.

¶ 12 Thank you.