Supplementary Estimate for Rs. 750 million
Supplementary Estimate for Rs. 374 million

"There is a possibility of diverting Kaluganga waters to dry zone"

Parliament met with Speaker K. B. Ratnayake in the chair. After presentation of reports and petitions and Ministers answered oral questions, Minister of Irrigation and Land, D. M. Jayaratne moved a supplementary vote for Rs. 750, million, towards re-current expenditure on institution development for crop production and marketing development.

Minister Jayaratne said: The money is required to maintain the subsidy on Urea. In the 1996-97 Maha Season, farmers used 113,803 metric tons of Urea. We had only 93,277 Metric Tons.

In the 1997-98 Maha Season the use of Urea further increased up to 168,119 MT. This is an increase of about 86.4 percent. The earlier figure was 80,589 MT.

The reason for the increase in the use of Urea was the reduction in prices due to the subsidy.

Opposition which earlier criticised the Government for giving a subsidy on Urea alone asked why the government cannot bring other fertilizers too under a subsidy scheme.

This is not so. The recommended application of fertilizers for an acre of land is as follows: 90 kilograms of Urea; 25 kilograms of Super Triple Phosphate (STP) and Potassium 15 kilograms. The total quantity of all the three varieties of fertilizes per acre is 130 kilograms per acre.

The recommended quantity of Urea per acre was 90 kilograms and this quantity is very much more than the two other varieties.

In 1977 a bag of Urea cost Rs. 1062 and we gave it to the farmer at Rs. 630. A bag of STP cost Rs. 340 and Potassium Rs. 180.75.

The proportions of fertilizer I mentioned earlier are recommended for the dry zone. As a result of the subsidy on Urea a paddy farmer is getting an additional profit of Rs. 270.25 from each acre under the plough.

The proportion recommended for the intermediate zone is 55 kilograms of Urea, 25 kilograms of STP and 15 kilograms of Potassium. The additional profit a farmer derives in the intermediate zone from an acre of paddy land is Rs. 102.25.

The Government is giving the fertilizer subsidy to the paddy farmer in the dry zone because the paddy farmer is the most suffering individual. In the wet zone, the paddy farmer can obtain additional income by cultivating other crops.

The use of urea increased sharply from 1995. Apart from the paddy cultivators, tea small holders too, used Urea and leaf production increased by 60 percent as a result.

Government has to pay Urea importing companies including three government institutions as a result of supplying Urea to farmers at the reduced rates.

Dharmadasa Banda (UNP-Moneragala District) said: it is indeed laudable that the Minister invited criticism from members, regarding his area of work. You promise to take action to stop the import of potatoes and then after a while you give permits to import potatoes to the traders. We are not opposed to Rs. 7500 million supplementary estimate. The farmers are now given urea at a subsidised rate while the subsidies were removed from all other fertilisers. I request the Minister to subsidise other fertilisers which is two thirds of the total demand. If you request our support for this estimate you must take measures to see that our request are implemented.

Out of 1,500 million rupees that was allocated, you will use only Rs. 1,092 million. You will not need 750 million to pay for the fertilizer subsidy this year. For one ton of Urea a sum of Rs. 4,930 is paid as a subsidy by the Government. The importer pays only Rs. 1870. When the cost of transportation and storage is calculated the total amounts to only around Rs. 5000. But Urea is sold at over Rs. 6,000 to the farmer. You can reduce the price of Urea by another Rs. 1000.

Importers who brought in 9,000 metric tons of substandard Urea should be penalised and their permits should be cancelled.

Minister - We have taken legal action.

Chair -They will be charged a minimal amount. 2000 tons of substandard Urea that was detected in the port suffered the usual fate. Those were traded in the port and that is now in the market. Today the imports are streaming into the country relegating the local farmers into misery. Now import duties have been reduced. You appear to be helpless in rectifying the situation. You rave about the fruit cultivation but nothing feasible has come up. You claim that 11 lakhs of fruit plants were sold at the Agricultural exhibition. Most of these were Rambuttan. You should step up efforts to provide the quality plants in every section of agriculture.

H. M. Weerasinghe (PA-Ampara District) said: We thank the Minister for giving the fertilizer subsidy to farmers. But another important factor is the agro-chemicals. These are as essential as fertilizers for paddy and other cultivations. Safety of the paddy plant is essential if one wants a better yield.

Government must formulate a programme to enable small paddy growers to obtain tractors. This is essential for the small farmers, to obtain an additional income.

Ronnie de Mel (UNP-Matara District) said: The Agriculture Minister's speech which spelt out his Agricultural Development programme was very interesting. It is very attractive too. The intentions too are good. But it is still a "Kathava Dolawen Gamana Pying" story. It was so even during our governments. The Agricultural Ministry has always been a slow moving institution.

Today you cannot obtain a reply to a letter from the Agricultural Ministry.

Minister Jayaratne: Can you give specific instances?

Ronnie de Mel: I can give you many.

No plants are available this is also a serious problem.

Minister Jayaratne: It is the opinion of scientists that you cannot produce plants in large scale. If somebody wants plants in large quantities and give an order to the Agricultural Authority they are able to produce new plants and supply them.

Ronnie de Mel: The father of the agricultural programme in this country was D. S. Senanayake. His policies were followed later by Dudley Senanayake and C. P, de Silva.

We had established Agricultural Research Centres in this country. Our scientists are working in Philippines agricultural research institutions. They have produced improved seed varieties.

We have not still been able to reap the full benefits from the Mahaweli and other such development projects. The Nilwala project in Matara is not yet complete. One stage of the programme yet remains unimplemented.

Kalu Ganga is the fastest flowing river in this country. Mahaweli is only a sheet of muddy water and sand. There is a possibility of diverting the waters of Kalu Ganga to the dry zone. We had a programme to divert the waters of Kalu Ganga through a tunnel to the dry zone, where large extents of land remain uncultivated due to lack of water which could be brought under cultivation again.

Today all assistance is being received by the big cultivators. The small cultivator is not receiving anything. Even the World Bank and Asian Development Bank assistance should be granted to small cultivators too.

Minister Jayaratne: Small cultivators are receiving assistance. They receive upto Rs.120,000 rupees.

Deputy Speaker Anil Moonesinghe: It is so. In Horana Tea Small Holders are receiving assistance at present.

I am happy if they are receiving such assistance.

Contd. Tomorrow