The government has decided to provide an additional fertilizer subsidy to small-scale tea plantation owners and the Treasury has already allocated the necessary funds, Minister of Plantations and Community Infrastructure Samantha Vidyaratne said on May 12.
Speaking to reporters, the minister said there is currently no fertilizer shortage in the country but warned that prices could rise in the months ahead. “Given the current global situation, fertilizer prices have increased, while shipping costs and maritime insurance premiums have also risen. As a result, the cost of imported fertilizer is being driven up,” he said, pledging that the government will ensure a continuous supply regardless of the price pressure.
The minister’s warning aligns with broader fuel and freight shocks linked to the Strait of Hormuz disruptions. UN aid agencies have already warned that the same maritime insurance and shipping squeeze threatens up to 45 million people through fertiliser supply disruptions, with the next planting season as the hard deadline. Plantations Minister Lal Kantha separately told a Gannoruwa briefing this month that Sri Lanka has no fertilizer shortage for the Yala season, with private-sector imports continuing.
The small-holder tea sector accounts for the bulk of Sri Lanka’s tea production by volume and is the most price-sensitive segment to fertilizer cost shocks. The decision comes as Sri Lanka’s tea output fell 14.5 percent in March and auction prices declined for a third consecutive month, tightening the squeeze on cultivator margins.
The minister did not disclose the subsidy quantum, per-kilogram support or distribution timetable. Allocation details from the Treasury are expected in subsequent statements.
Sources: Ada Derana — Additional fertilizer relief announced for small-scale tea plantation owners.
