Sri Lanka Distributes Yala Season Fertilizer Subsidies Amidst Supply Concerns

New reports indicate that the government has intervened to stabilize fertilizer prices, with Deputy Minister Namal Karunaratne stating that a fertilizer bag is now available to farmers for Rs. 9,900, down from a potential market price of Rs. 25,000 and previous private sector sales of Rs. 16,000-18,000. In a separate development, Minister Samantha Viyalaratne announced an additional, free fertilizer subsidy round for small tea estate owners, with Rs. 2500 million allocated for distribution by the end of the month. Additionally, Deputy Minister Namal Karunaratne confirmed the government has begun purchasing potatoes through Sathosa at Rs. 220 per kg to ensure fair prices for farmers.

Deputy Minister Namal Karunaratne and the Fertilizer Secretariat have denied allegations that the government is overpaying for fertilizer imports, calling such reports "completely false." They also stated that there is no fertilizer shortage in the country, contradicting earlier indications of limited government stocks. The subsidy amount of Rs. 30,000 per hectare is being distributed.

For the Yala season, fertilizer subsidies are currently being distributed to farmers, with the Polonnaruwa district seeing nearly 74,000 farmers engaged in paddy cultivation. These farmers are receiving Rs. 30,000 per hectare. However, Deputy Minister of Agriculture Namal Karunaratne stated that due to limited government stocks, the full quantity of fertilizer requested by farmers cannot be provided, although available stocks will be distributed at fixed prices.