Rs.11 billion more for fertiliser subsidy

Uditha Kumarasinghe Irangika Range and Sandasen Marasinghe

KOTTE: The Government yesterday presented a Supplementary Estimate for Rs.11.84 billion to Parliament to meet the fertiliser subsidy payment in addition to the allocation of Rs.15 billion to the Ministry of Agriculture Development and Agrarian Services.

Chief Government Whip and Urban Development and Sacred Area Development Minister Dinesh Gunawardana presented the Supplementary Estimate to Parliament yesterday on behalf of Agriculture Development and Agrarian Services Minister Maithripala Sirisena.

He said that the allocated amount of Rs.15 billion for 2008 is sufficient only to meet the subsidy payment upto May 2008. Accordingly, a provision of Rs.27.1 billion is required to meet the financial commitment for the fertiliser requirement for 2008.

Therefore, it is necessary to allocate Rs.11.84 billion in addition to the provision of Rs.15 billion already allocated to the Ministry for the payment of the fertilizer subsidy.

He said the Cabinet has already approved the additional allocation of Rs.11.84 billion through a supplementary estimate to meet the fertiliser subsidy payment.

According to the Policy decision of the Government, the fertiliser subsidy scheme is being implemented for the benefit of paddy cultivation and tea smallholdings. Incurring a huge loss, the Government provides Urea, Triple Super Phosphate and Muriate of Potash for paddy farmers at Rs.350 (per 50 kg bag) while Urea is sold at Rs.1200 (per 50 kg bag.)