• Sri Lanka’s potato and onion crisis deepens

The markets are bustling, vegetables piled high in neat rows, but the farmers behind them are struggling in silence.

Across Sri Lanka, potato and big onion cultivators face a crisis that threatens not only their livelihoods but also the country’s food security. While consumers pick through sacks of produce in Pettah or Dambulla, small-scale farmers are trapped in a system that punishes them for producing locally: rising production costs, volatile market prices, and Government policies that often favour imports over domestic agriculture.

The social and economic implications extend beyond individual farmers. A collapse in potato and onion production would make the country dependent on imports for staples that have long been grown locally and disrupt rural economies reliant on agriculture for employment and income.

For now, farmers remain caught in the middle. They protest, petition, and borrow while producing the very food that ends up on urban tables. Their message is urgent and clear: without immediate and effective intervention, local agriculture will face irreversible damage.

As the Maha season progresses, the question remains: will the Government act decisively to protect local farmers, or will market instability and delayed policies continue to push them to the brink? For many small-scale cultivators, the answer will determine not just livelihoods but the very survival of potato and onion cultivation in Sri Lanka.

Multiple challenges 

Welimada Uva Paranagama Farmers’ Collective President W.M. Gunawardena told The Sunday Morning that the situation had reached a tipping point. 

“The Government is indirectly pushing farmers into the arms of loan sharks,” he said. “We are forced to sell our produce at a loss, and policies and imports continue to undermine our survival.” 

The human cost is stark. Farmers face mounting debts, disrupted livelihoods, and mental stress. “If these conditions persist, many will abandon big onion cultivation, leaving the country reliant on imports,” said Gunawardena. 

He said the current wholesale market price for potatoes ranged between Rs. 180–220 per kilo, but that prices were dropping due to quality inconsistencies. “Some farmers mix big potatoes with small potatoes, and ultimately the prices drop at the wholesale market,” he said. Last year, wholesale prices stood around Rs. 140–180 per kilo. 

A major concern, Gunawardena noted, was the sharp increase in production expenses. “The production cost is Rs. 42,000 per 50 kg,” he said, stressing that farmers were struggling to remain profitable. Fertiliser prices have also risen, now costing Rs. 7,500–8,000 per bag, while seed potatoes are priced at Rs. 40,000–45,000 per 50 kg bag. 

Gunawardena further highlighted that farmers could store potatoes for up to three months if proper facilities were available. However, he noted that ordinary farmers lacked the facilities, adding that storage required boxes instead of sacks, though no cold rooms were needed. He further pointed out that only wealthier farmers with adequate storage capacity could hold their stock until prices increased, putting small-scale farmers at a disadvantage. 

He criticised the practice of importing potatoes close to the local harvesting period, saying it affected market prices and farmer income. “Importing potatoes when it nears the harvesting season is the issue,” he said. 

Gunawardena also raised concerns about farmers taking advance payments without knowing the fertiliser prices for the upcoming Maha season. “Whatever price is declared later on, farmers will have to buy as there is no solution,” he added. 

With the Maha season already underway, Gunawardena urged authorities to support farmers by reducing input costs and adjusting market rates. He called on the Government to increase the price to Rs. 250 per kilo of potato and to intervene to stabilise the potato sector. 

For big onion farmers, the challenges are equally daunting. Lanka Sathosa’s announcement earlier this year that it would purchase local onions in bulk at Rs. 140 per kilo initially raised hopes. That optimism quickly gave way to frustration when farmers arrived at purchasing centres only to discover strict new quality requirements. Onions must contain exactly eight bulbs per kilo, fall between 35–65 millimeters in diameter, and comply with SLS 1224:2002 standards. 

Kamal Samarasinghe, a farmer from Galewela, described the dilemma. “How can we produce onions of this size and quality without technology, subsidies, or guidance? These standards were never enforced before, yet now they are being applied as if all farmers are prepared.” 

The timing of imports adds another layer of pressure. Gunawardena and other farmers argue that bringing potatoes and onions into the country when it nears the local harvesting season drives down prices, leaving small-scale cultivators unable to compete. “Only the wealthy, who can afford proper storage facilities, survive. The rest of us lose money,” he said. 

Storage is a critical bottleneck. Farmers can store potatoes for up to three months if proper facilities are available, but most lack the infrastructure. Boxes are required instead of sacks, though cold rooms are not essential. Without these facilities, farmers are forced to sell immediately, often at prices below production costs. 

L. Bandara, a potato farmer in Nuwara Eliya, described the financial strain in stark terms. “We spend huge sums on cultivation. By the time the harvest comes, prices are so low that many of us are forced to sell at a loss. Some farmers already have debts from loan sharks. When we incur losses, we borrow more. This has become a vicious cycle,” he said. 

Reliance on informal loans compounds the problem. Many farmers borrow from loan sharks, hoping for modest returns. When prices fall or quality standards are unmet, they incur further debts, creating a cycle that is difficult to escape. “Without a formal mechanism to purchase our harvest at fair prices, there is no way out,” Bandara said.

Farmer protests 

The crisis has prompted public demonstrations. Earlier this week, members of the All Ceylon Farmers’ Federation blocked the Keppetipola Economic Centre, symbolically refusing to bring produce to market. 

Similar protests erupted at the Dambulla Economic Centre, where big onion farmers demanded a guaranteed price of Rs. 200 per kilo, even as wholesale prices hovered between Rs. 160–170. While protests drew attention to the farmers’ plight, other markets in Kandy and Thambuttegama continued to operate, albeit with noticeably reduced stocks. 

The Central Bank of Sri Lanka’s daily price reports highlight the volatility plaguing farmers. Potatoes were Rs. 267 per kilo on 13 November 2024, dipped to Rs. 217 on 13 October 2025, and rebounded to Rs. 266 by 13 November 2025. Big onions fell from Rs. 327 per kilo in 2024 to Rs. 143 in October 2025, rising slightly to Rs. 165 by mid-November 2025. 

“These fluctuations make it impossible for farmers to plan their cultivation or break even,” said Gunawardena. “Without stability, many smallholders will be forced to abandon farming altogether.”

Govt. response

Government officials maintain that long-term solutions are being implemented. Trade, Commerce, Food Security, and Cooperative Development Minister Wasantha Samarasinghe told Parliament that Rs. 1,000 million had been allocated under the 2026 Budget for a structured programme for the purchase and storage of potatoes and big onions. The initiative aims to stabilise market prices and ensure adequate storage facilities. 

However, speaking to The Sunday Morning, Deputy Minister of Trade, Commerce, and Food Security R.M. Jayawardana clarified that no immediate increase in prices had been decided. He explained that the onion production cost was around Rs. 90 per kilo, while the wholesale purchasing price was Rs. 140 and retail price Rs. 160. The potato wholesale price hovers around Rs. 220 per kilo. 

“Local onions cannot be stored for long because farmers are not following proper cultivation instructions,” he said. “The Rs. 1,000 million allocation will enhance storage facilities. Issues related to seeds and technology take time because the programmes must start from scratch. Immediate price hikes would shift the burden to consumers. All we can say is that we are on the right track.”

Constant imports during local harvests, inconsistent purchasing policies, and delayed access to high-yield cultivation techniques leave small-scale farmers exposed. According to Central Bank statistics, Sri Lanka imported 180,121 MT of potatoes and 212,720 MT of big onions in 2024, contributing to unstable market conditions. 

The Special Commodity Levy (SCL) was increased in August to protect local producers, leading to an increase of Rs. 10 per kilo for imported big onions and Rs. 20 for potatoes. The Committee on Public Finance has recommended integrating tariffs with the National Tariff Policy, assessing the impact of proposed changes, and phasing out para-tariffs by 2030. Yet farmers contend these measures are insufficient. 

The Government maintains that strategic planning is necessary. Minister Samarasinghe emphasised that interventions had been underway since August and that Budget allocations were aimed at creating sustainable systems for storage and price stability. 

Farmers, however, remain sceptical. “Delays mean losses, and losses mean more debt, stress, and uncertainty,” noted Nuwara Eliya potato farmer Bandara.