The government has raised the fertilizer subsidy paid to paddy farmers by Rs. 5,000 to Rs. 30,000 per hectare, Commissioner General of Agrarian Development Dhammika Ranatunga announced on Friday.
Speaking at a media briefing at the Department of Government Information, Ranatunga said 502,836 farmers across the country will benefit from the higher rate, and the government has allocated Rs. 10,947 million for the programme. The full subsidy amount will be credited to each farmer’s bank account in a single payment, he said, removing the staggered disbursement that has previously caused complaints from cultivators.
The Rs. 5,000 step-up takes the per-hectare subsidy roughly 20 percent above the Rs. 25,000 rate that had been in force, and lands as cultivators prepare fields for the Yala 2026 paddy crop under the higher input-cost environment created by rupee depreciation and Middle East-driven freight pressure. The Rs. 10.9 billion total allocation implies an average of roughly Rs. 21,775 per farmer at the new rate.
The decision follows the Cabinet’s earlier approval of Rs. 8,990 million to fund 75 percent of the cost of fertilizer for paddy cultivation in the Yala 2026 season, and the purchase of 15,000 MT of urea fertilizer to bridge the gap until private importers ship in their orders approved on May 19. The Agrarian Development Department’s announcement converts that high-level Cabinet allocation into an on-account transfer figure that cultivators can plan around.
The higher subsidy is also a politically visible response after the Galenbindunuwewa farmer protest in May, when paddy growers demanded direct fertilizer support rather than vouchers tied to private retailers.
Update — June 21: 90 percent disbursement
Ranatunga confirmed on June 21 that 90 percent of Yala-season farmers have now received the subsidy payment, with the remaining cohort to be paid “as soon as possible.” The Department of Agrarian Development did not break out the headcount of pending farmers, but the disbursement rate puts the programme on track for full payout before the Yala harvest window opens. The Rs. 5,000 increase to Rs. 30,000 per hectare remains the in-force rate.
