Agrarians reject Yala paddy prices, demand Rs. 140 per kg

By Mangala Pavithrani

Colombo, July 1 (Daily Mirror) - The National Agrarians' Unity has rejected the government's guaranteed paddy prices for the 2026 Yala cultivation season, describing them as unrealistic in the face of rising production costs, and has warned of trade union action if the pricing policy is not revised.

Speaking to the Daily Mirror, Chairman of the National Agrarians' Unity, Anuradha Tennakoon, said the organisation is demanding a guaranteed price of Rs. 140 per kilogram for paddy and plans to mobilise farmers across the country in protest against the current pricing policy.

He noted that the government has maintained the same guaranteed prices for the past four cultivation seasons, beginning with the 2024/25 Maha season. Under the existing pricing structure, the guaranteed prices remain at Rs. 120 per kg for Nadu, Rs. 130 per kg for Samba, and Rs. 140 per kg for Keeri Samba.

Tennakoon argued that these prices are no longer viable due to the significant increase in production costs, including diesel, chemical fertiliser, agricultural inputs, tractor hire and labour costs, which he said have risen sharply due to global economic conditions and the ongoing crisis in the Middle East.

He pointed out that, according to data from the Hector Kobbekaduwa Agrarian Research and Training Institute, the cost of producing one kilogram of paddy is approximately Rs. 137. He added that Agriculture Minister K.D. Lalkantha had also acknowledged this figure.

"How can the government expect farmers to sell paddy at Rs. 120 per kilogram when it costs around Rs. 137 to produce it? If the government is concerned about consumers, it should focus on reducing production costs instead. A Rs. 20 increase in the paddy price will not significantly increase the price of rice," Tennakoon said.

He further warned that the current pricing policy could discourage farmers from cultivating paddy during the upcoming Maha season. According to Tennakoon, there is also a risk that abandoned paddy lands could eventually be taken over by large-scale companies.

Tennakoon said the National Agrarians' Unity would launch strong trade union action by mobilising the farming community if the government fails to revise the guaranteed paddy prices.