Sri Lankan farmers reject govt compensation, paddy price

Sri Lankan farmers have rejected a compensation offer and guaranteed purchase price for paddy for being inadequate and discriminatory.

“The farming community is not ready to accept the guaranteed price of 75 rupees [37 US cents] per kilo as it was not sufficient to cover the production costs of farmers,” said Namal Karunaratne, convener of the All Ceylon Farmers Federation.

He also criticized the decision to pay compensation to farmers who cultivated paddy only using organic fertilizer. “Compensation for crop losses should be paid to all farmers, whether it is paddy, vegetables or tea plantations. The government should pay more than 100,000 rupees per acre,” Karunaratne demanded.

The island nation’s farmers have been in crisis since the government banned chemical fertilizers and agrochemical imports in April 2021 to make the agriculture sector 100 percent organic.

The government decided to revoke the ban in November, allowing the private sector to import after a serious shortage of fertilizers across the nation and protests by farmers’ organizations and opposition parties.

Some farmers gave up cultivation during the season while others incurred huge debts as the crops failed due to a shortage of fertilizers.

Now the government has decided to pay compensation to all farmers who cultivated paddy during the season using organic fertilizer.

Minister of Agriculture Mahindananda Aluthgamage said the cabinet had approved 40,000 million rupees as compensation meant for paddy farmers who used organic fertilizers.

Tea plantation workers and vegetable growers affected by crop damage are now demanding that the government compensate them as well for crop damages.

Rights activist Nalin Suresh Hewawadu alleged the ban on chemical fertilizer imports was initiated to tide over the foreign currency reserves crisis and not for the benefit of farmers.