Trade and markets
 

Detail

Area
Sri Lanka
Commodity Group
Rice
Commodity
All
Date
20/11/2015
Policy Category
Production
Policy Instrument
Budgetary allocations, production support, support prices
Description
As part of its 2016 budgetary allocations, announced that it would replace the fertilizer scheme, providing farmers with a 50 kilo bag at a subsidised price of LKR 350 (USD 48 per tonne), with a direct cash handout of LKR 25 000 (USD 171) for up to 1.0 hectare of cultivated paddies. Steps would be taken to encourage greater production and use of high quality seeds, to exempt agricultural machinery from import duties and to introduce a warehouse receipts scheme. With an eye to keeping consumer prices close to LKR 65 per (USD 0.4) kilo, guaranteed purchasing prices for paddy would be adjusted down to LKR 50 per kilo (USD 341 per tonne) in the case of Keeri Samba, LKR 41 per kilo of Samba paddy (USD 280 per tonne) and to LKR 38 per kilo of Nadu paddy (USD 259 per tonne). Further provisions included distributing some 40 000 tonnes of rice to vulnerable groups through existing welfare schemes and encouraging rice exports.
Notes
Exchange rate as of 1 December 2015.