Agriculture sector facing collapse due to IMF-backed policies: Farmers’ union

By Mangala Pavithrani

Colombo, June 3 (Daily Mirror) - The country’s agricultural sector is facing the threat of collapse due to government policies influenced by the International Monetary Fund (IMF) and the World Bank, National Farmers’ Union Chairman Anuradha Tennakoon warned.

Speaking to the Daily Mirror, Tennakoon said that although strengthening local agricultural production is vital for boosting the national economy, the current approach has placed the entire farming sector at serious risk.

He pointed out that agriculture remains the primary source of income for nearly 35% of Sri Lanka’s population and warned that misguided policy decisions and increasing imports are undermining local production.

“The Netherlands, despite being much smaller than Sri Lanka, earns around US$103 billion annually from agricultural exports. Sri Lanka, with a much larger land area, has still not reached the US$10 billion mark in agricultural exports. A development strategy focused on agricultural production rather than excessive dependence on industrialisation would be more suitable for the country,” he explained.

Tennakoon alleged that the government, under the pretext of providing consumers with cheaper food, is importing a wide range of agricultural products, including rice, vegetables and potatoes. He said this has left local farmers struggling to compete and could eventually drive many of them away from farming.

He noted that nearly two million families in Sri Lanka depend on agriculture for their livelihoods. If authorities fail to adopt more farmer-friendly policies, the country’s economic situation could worsen further, he warned.

Referring to the challenges faced by paddy farmers, Tennakoon said it currently costs around Rs. 140 to produce a kilogram of paddy. However, farmers are often unable to secure even the government’s guaranteed price of Rs. 120 per kilogram.

“In districts such as Kurunegala, paddy is being sold for as low as Rs. 90 per kilogram, causing significant losses to farmers,” he noted.

He also highlighted rising labour costs, saying farmers have to spend between Rs. 3,000 and Rs. 4,000 per day on agricultural workers, in addition to providing meals and other allowances.

According to Tennakoon, increasing fuel prices, particularly diesel, have directly raised production costs by affecting harvesting operations and the use of agricultural machinery. He further noted that taxes, including VAT, have pushed up the prices of farming equipment.

To protect farmers and sustain local production, he urged the government to provide fuel subsidies or grant tax concessions without delay.