Press briefing of Cabinet Decision taken on 2021-02-01

Amending Fertilizer Subsidy Scheme

- Approximately 382,000 metric tons of fertilizer for paddy cultivation is provided free of charge to 1.45 million beneficiaries annually. Further, the opportunities have been provided to obtain subsidized fertilizers in the market for other non-paddy crops without any restrictions. It has been found that, under the existing methodology, the fertilizer subsidy for non-paddy crops is being utilized by other parties outside the target farmers, making it difficult for farmers to meet their fertilizer requirements when required. Due to this, it has also been found that, the Government has to incur more than the estimated cost for the fertilizer subsidy program annually. Taking these matters into consideration, the Cabinet approved the proposal made by the Minister of Agriculture to implement the fertilizer subsidy program in future as follows:

* Implementing the fertilizer subsidy scheme for paddy in the same manner as at present for 2 seasons per year, subject to a maximum of 02 hectares per one cultivation season.

* Providing opportunity to purchase fertilizer under the fertilizer subsidy programme up to a maximum of 05 hectares per year, subject to the quantities determined by the relevant research institutes for each non-paddy crops.