Press briefing of Cabinet Decision taken on 2018-05-22

Introduction of a Fertilizer Subsidy Scheme starting with the 2018 Yala cultivation season for paddy farmers using organic farming methods

- According to the method of granting fertilizer subsidy to the farmers in the form of cash, implemented from the 2016 Yala Season onwards, there was the option of using the subsidy by the farmers for the purchase of chemical fertilizer or organic fertilizer for their cultivation. However, with the granting of chemical fertilizer again to the farmers on a subsidized price from 2018 Yala Season onwards, this programme is now being implemented and this had not provided any relief to the farmers who cultivate using organic fertilizer.

As such, taking into consideration, the importance of encouraging organic cultivation, the proposal made by Hon. Mahinda Amaraweera, the Minister of Agriculture to identify the farmers who are engaged in the organic farming in each season and the actual extents of land to be cultivated at the Grama Niladhari Division level and credit the relevant financial subsidy in their bank accounts and make the necessary adjustments in each season based on the variations in the price of chemical fertilizer, was approved by the Cabinet.