The government’s rice import policies and limitations on fertilizer subsidies have sparked criticism from farmer organizations, who allege that these decisions disproportionately benefit a major business owner at the expense of struggling farmers.
Speaking at a media briefing organized by the Farmers’ National Conference at the N.M. Perera Center in Borella, co-convener Wimal Wattuhewa outlined the challenges faced by farmers following extensive crop damage caused by recent floods. According to Wattuhewa, over 300,000 acres of farmland in districts such as Batticaloa, Ampara, and Trincomalee were destroyed, yet the government has not conducted a thorough assessment of the losses.
“The Rs. 40,000 compensation per acre set by the outdated circular is grossly inadequate,” Wattuhewa said. “We demand at least Rs. 100,000 per acre as compensation, considering the extent of the damage and the rising costs of cultivation.” He urged the government to recognize the flooding as a national disaster and to implement a cabinet decision to increase financial aid to affected farmers.
In addition to crop losses, Wattuhewa criticized the government’s rice import strategy. He noted that Sri Lanka cultivates approximately 1.2 million hectares of paddy annually, producing an average of 4.8 million metric tons of rice. Recent harvests reached 4.5 million metric tons in 2023 and 4.6 million metric tons in 2024, indicating no significant production shortfall. Despite this, large-scale rice mill owners are accused of hoarding stocks to create an artificial scarcity and drive up prices.
Wattuhewa specifically called out prominent rice mill owner Dudley Sirisena, who claimed financial difficulties during a recent media appearance. Sirisena reported paying Rs. 85 million in monthly bank interest and Rs. 22.36 million in electricity bills. Wattuhewa questioned the credibility of these figures, asking, “Which bank received such interest? When was the Electricity Board paid so much? These statistics do not add up.”
He added that major mill owners often recover production costs through by-products such as bran and rice powder, which generate significant revenue. “No one mentions the profits from by-products when claiming losses,” Wattuhewa said.
The import of rice has led to a market glut, pushing down prices and forcing some large-scale millers to abandon paddy cultivation this season. This, in turn, has exacerbated the losses faced by farmers, who are unable to sell their harvests at fair prices.
Wattuhewa called for immediate government intervention to protect farmers from exploitation and to ensure fair compensation for their losses. “Farmers are the backbone of our nation. It is unjust to let their livelihoods be undermined by policies that favor big business.”
