Govt subsidy for farmers

As farmers all over the island are expressing frustration on the import of the fertilizer ban President Gotabaya Rajapaksa has promised to buy paddy at prices higher than a guaranteed price and sell at current prices to consumers if a ban on chemical fertilizer reduces yields, had said.

 

“Therefore, he said the farmers should not have any fear in the initiative’ said the president . It is very likely that yields will drop and the strain of this subsidy will be heavy on government expenditure. However, the president is confident that that the balance of payments will balance out.

 

Sri Lanka has said chemical fertilizer will be banned to save 400 million dollars in foreign exchange spent on imports and about 50 billion rupees of fertilizer subsidies will be saved, which can be re-directed to farmers as subsidies.

 

“The President outlined his plans at a meeting on creating a ‘green’ economy, held at the presidential sectarian.

 

“The President said that the government is ready to bear the cost to ensure that the consumers can purchase rice for existing prices.”