Program to increase agricultural exports – Fin Min

The government has embarked on an ambitious program to strengthen agriculture targeting the export market, Finance Minister Ravi Karunanayake told guests at the opening of the largest warehouse complex in Sri Lanka at Buttala, Monaragala.

“Twenty five percent of the country’s labour force is engaged in the agricultural sector. Therefore, it is the responsibility of the government to accord priority to this sector. On November 20 last year, we outlined the vision for the development of the country.

“It is evident from the Budget proposals what our priorities are. We all should rally round to build a new country. We must toil hard to create something new to achieve economic stability. We had a record paddy harvest last season.

“We are ready to deal with this bumper harvest in a positive manner. The government has decided to mill the excess stocks and distribute them among Samurdhi beneficiaries. Approximately 10,000 tons could be distributed a month among Samurdhi recipients. There is also the possibility of selling about five tons to government departments and hospitals.

“Through this, we can reduce nearly 200,000 tons of rice annually from the stocks.

Action will also be taken to export some of the surplus stocks. Rice will be exported to countries such as Indonesia, Ghana and Nigeria. As there are surplus stocks, discussions were held with the Prime Minister to increase the tax imposed on imported rice.

A tax of Rs.35 has been slapped on imported rice. It will be increased up to Rs. 50 from midnight today (January 31). This measure has been taken to protect the local paddy farmer.

“If priority is given to locally produced items, we can improve our balance of payments. Last year, the government allocated Rs. 4.8 billion for the fertiliser subsidy and altogether the subsidies for rice cultivation amounted to Rs. 8.4 billion. Can a government continue to bear such a huge expenditure? Everybody talks about strengthening agriculture. But a country cannot be developed through agriculture alone. We have to focus on other sectors as well while continuing to support the agricultural sector,” he said.

Minister of Rural Economic Affairs, P. Harrison, Minister of Public Administration Ranjith Madduma Bandara and Parliamentarian Ananda Kumarasiri and the Secretary of the Ministry of Finance, Dr. R.H.S. Samaratunga and senior officials of public sector institutions and farmers were also present.