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Agriculture subsidies: Farmers put on notice

Agriculture subsidies: Farmers put on notice

02 Nov 2025 | By Faizer Shaheid


  • Measure intended to curb misuse of public funds
  • Revised policy in effect from next cultivation season
  • Penalty mechanism to link support to verified cultivation

The Government has announced a new policy aimed at strengthening accountability in the country’s agricultural subsidy programme, introducing penalties for farmers who receive advance fertiliser payments but fail to cultivate their land. 

The measure, according to Deputy Minister of Agriculture Namal Karunaratne, is intended to curb misuse of public funds and ensure that the State’s financial assistance directly supports active agricultural production.

The revised policy, which will come into effect from the next cultivation season, will specifically target cases where farmers obtain upfront fertiliser subsidies without carrying out cultivation. 

Karunaratne explained that the decision followed concerns about inefficiencies and delays under the current system, in which the fertiliser subsidy is disbursed only after cultivation has begun. 

These delays, he noted, often hindered farmers’ ability to begin land preparation on time.

“We decided to deposit the money before they commence cultivation,” Karunaratne said. “So they get a portion of the subsidy at the beginning itself and prior to commencing cultivation.”

However, he acknowledged that the shift to an upfront payment model carried risks. Some farmers who may receive the initial instalment may fail to cultivate, creating what Karunaratne described as “auditing issues and accusations of corruption”.

To prevent such abuse, the ministry has introduced a two-tier penalty mechanism to link financial support strictly to verified cultivation.

Under this new rule, if a farmer accepts the first instalment but fails to cultivate, the Government will withhold the remaining payment for that season. Additionally, during the following cultivation cycle, the farmer’s fertiliser entitlement will be reduced by the value of the earlier disbursed sum. 

“Failure to cultivate after accepting State funds amounts to an abuse of public money,” Karunaratne stressed, adding that the policy was necessary to protect the integrity of the subsidy programme.

Confirming the procedural timeline, Ministry of Agriculture Secretary D.P. Wickremasinghe stated that the ministry was currently issuing the fertiliser subsidy only after cultivation had commenced, as per the existing regulations. 

He clarified that the new system of pre-cultivation disbursement and corresponding penalties would take effect from the upcoming agricultural season, once the administrative and monitoring mechanisms were in place.

Karunaratne maintained that while the Government would continue to assist genuine cultivators, those who failed to use public funds for their intended purpose had to face consequences. 

“Our goal is not to punish farmers but to ensure fairness and efficiency,” he said. “Every rupee given for cultivation must result in cultivation, or it will result in an abuse of State funds.” 




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