COLOMBO, March 23 (Xinhua) -- Sri Lanka's agriculture sector is facing mounting pressure as rising fuel prices increase production costs, raising concerns over a potential decline in output, industry representatives said.
Chairman of the National Farmers' Union Anuradha Tennakoon has warned that the recent increase in diesel and petrol prices, ranging between 80 rupees (0.25 U.S. dollars) and 90 rupees per liter, is already affecting farmers during the ongoing harvest season.
Higher fuel costs have increased operational expenses for agricultural machinery, including paddy-harvesting equipment and tractors. Service providers have indicated that hourly charges for machinery are likely to rise by approximately 2,000 rupees to 3,000 rupees, reflecting the increased cost of fuel.
As a result, the cost of harvesting paddy is expected to rise to around 25,000 rupees per acre, while ploughing costs, previously estimated at about 20,000 rupees per acre, may also increase to a similar level.
Meanwhile, the government has introduced measures to ease fuel access for farmers. Deputy Minister of Agriculture and Livestock Namal Karunaratne said that procedures have been simplified, allowing farmers to obtain fuel for agricultural use with approval from their respective farmers' associations, removing earlier administrative requirements.
Under the revised system, farmers engaged in harvesting are eligible to receive up to 20 liters of fuel, while those involved in ploughing and puddling can obtain up to 30 liters.
However, the government has indicated that no fuel subsidy will be provided, noting that fertilizer subsidies are already in place and that both forms of support cannot be extended simultaneously. Agriculture sector stakeholders have cautioned that continued cost pressures could impact production levels if current conditions persist. (1 Sri Lankan rupee equals 0.0032 U.S. dollars) ■