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| Sunday, 19 June 2005 |
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Business |  |
| News Business Features Editorial
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Plea to
recommence murate of potash subsidy
by Hiran H. Senewiratne The Coconut Growers Association (CGA) has called upon the government to recommence the fertiliser subsidy program for Murate of Potash, which was discontinued a year ago. The high cost of fertiliser and increase in labour charges have resulted in increased cost of production in most coconut lands in the country, CGA President Ranjith Dias said. He said the increase of Murate of Potash in the market, has affected the entire sector. Eighty per cent of land owners depend on the coconut industry, he said. He said the CGA has called upon the the government to reduce the prices of Murate of Potash from Rs. 24,000 to Rs. 17,000 for a tonne before the end of this year. The Secretary to the Ministry of Plantations A. Abeyawickrama said that the government removed the fertiliser subsidy due to certain problems and hopes to recommence the subsidy in a different way. Big land owners and importers enjoyed the fertiliser subsidies before it was terminated. He said the government is looking for a donor agency to fund the coconut industry in a big way. They expect the donor agency to fund all industry related development activities including the fertiliser subsidy. At present the government is providing the coconut subsidy in a small way but it is not sufficient, he said. The Secretary said that the money granted by the Treasury was not sufficient to provide the fertiliser subsidy. He said that the Ministry obtained Rs. 200 million from last year's budget and this is only sufficient to maintain the Coconut Research Institute, Coconut Cultivation Board (CCB) and the Coconut Development Authority. CCB Chairman Dr. Jayantha Gunathilaka said that at present the government provides the subsidy for three areas namely planting of seedlings, coconut planting and rehabilitation of coconut yields. He said that only 8,000 people enjoyed the former fertiliser subsidy and they were mainly big estate owners in the country. Dr. Gunathilaka said that they are in the process of implementing a new scheme. Under the proposed scheme they intend to purchase Murate of Potash at the lowest price from the market and will provide the subsidy for large coconut growers through a voucher and the small growers who have less than five acres through the Kapruka Society Program. The government expects to provide Rs. 4,000 a tonne for Murate of Potash. The government will spend Rs. 100 million on the subsidy scheme, he said. |
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