The price of a 50 kg bag of tea fertiliser has increased to Rs. 15,000 despite the Government recently granting a subsidy to tea smallholders, the National Tea Planters’ Association (NTPA) stated yesterday (26).

NTPA Chairman Saman Geeganage told The Daily Morning that the price of fertiliser stood at Rs. 9,500 before tensions in the Middle East began to affect markets. It later rose to Rs. 12,000 during the initial escalation, leading to complaints from farmers, and has now climbed further to Rs. 15,000, he said.

“Smallholders were given a subsidy recently. However, we have told the Government that we do not need a subsidy. What we need is a reduction in the price of the bag. What is the point of a subsidy if the base price keeps increasing? We cannot afford it. We do not understand why the Government does not understand this simple issue,” he added.

He also said that authorities have not properly understood the timing of fertiliser requirements for tea cultivation. “The Government releases the subsidy once every six months as if this is paddy farming. Tea cultivation requires fertiliser every three months,” he said.

Geeganage further pointed out that although publicity is given to the subsidy scheme as one that is available to all, the eligibility requirements make it difficult for many smallholders to qualify. “To receive the subsidy, smallholders must show a harvest of 150 kg per month. At times we cannot meet that requirement. It is difficult to find labour, and many of us are working in our own fields these days,” he said.

Tea smallholders contribute approximately 73% of the country’s total tea production. Geeganage warned that many farmers were already struggling to purchase fertiliser at Rs. 12,000, and with prices now at Rs. 15,000, production costs have exceeded earnings, placing the smallholder sector at serious risk.