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| Wednesday, 21 April 2004 |
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| Urea fertiliser down by Rs.200 from May by Sudarshana Perera The Government will reduce the cost of a 50 kg bag of Urea fertiliser by Rs. 200 from May 1 in keeping with its election pledge, Finance Minister Dr. Sarath Amunugama said yesterday. The immediate subsidy will bring down the selling price of a bag 50 kg Urea fertiliser to Rs 600.00. This subsidy by the Government led by President Chandrika Bandaranaike Kumaratunga is estimated to cost Rs 1 billion annually, Dr. Amunugama told a media briefing at the Ministry of Finance. The Minister said the measure comes as part of the new government's policy package to encourage and develop the rural economy, particularly paddy farming, the backbone of Sri Lanka's economy. According to statistics, the increased price of fertiliser has affected productivity in the agriculture sector, he said. "Further aid would help increase productivity levels in those sectors while having a cascading effect on the national economy," Dr. Amunugama said. He said the Government was involved in lengthy discussions with fertiliser importers and other relevant officials on price fluctuations in the world market, insurance and shipping levies. It wanted to ensure that farmers and consumers would get the direct benefit of the subsidy. "The new measure is only a start and we will study the agricultural sector to find solutions for problems such as paddy purchases and others. Paddy farming is the backbone of Sri Lanka's economy," the Minister said. The government will adopt a policy package to aid farmers, he said. He said the government was planning to introduce a network at Cooperative level to find a niche market for rural products among Samurdhi beneficiaries. "Through a monetary policy shift, we will give priority to the agriculture sector. "The earmarked infrastructure development projects would also be geared to boost the rural economy. "We want to find a niche market for our agricultural products. "We do not want to always depend on importers," he said. |
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