Fuel price hike threatens decline in agriculture sector

By Mangala Pavithrani

Colombo, March 23 (Daily Mirror) - Sri Lanka’s agriculture sector is at risk of a significant decline due to rising production costs triggered by the recent fuel price increase, Chairman of the National Farmers' Union Anuradha Tennakoon has warned.

Speaking to the Daily Mirror, Tennakoon said farmers are already feeling the impact during the ongoing harvest season, with diesel and petrol prices rising by Rs. 80 to Rs. 90.

“When fuel prices increase, the cost of production also rises. Owners of paddy harvesting machines and other agricultural equipment say they cannot continue at previous rates. Service charges are expected to increase by around Rs. 2,000 to Rs. 3,000 per hour,” he said.

He said that the cost of using a paddy harvesting machine could rise to about Rs. 25,000 per acre, while ploughing costs—previously around Rs. 20,000 per acre—may increase to approximately Rs. 25,000 due to higher fuel expenses.

Tennakoon said these costs are unsustainable for farmers, particularly as paddy prices remain around Rs. 120 per kilogram. Despite a government-guaranteed price, he claimed that buyers often purchase paddy for less than Rs. 110, citing higher transport costs.

“Farmers are ultimately the ones bearing these losses,” he added.

He also warned that the fuel price hike is likely to drive up the cost of rice, vegetables, and fruits in the coming months.

The upcountry vegetable sector is already facing significant challenges, he said, adding that prices are expected to rise further during the upcoming festive season due to increased production and transportation costs.