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Sri Lanka Announces Extension of Paddy Subsidies to 12 New Food Crops

The government will grant farmers 60,000 rupees per hectare for 13 crops on paddy lands, marking a historic subsidy expansion.

By MetaWorld MediaSource: english.news.cn3 min read

In a move that could reshape the island’s agricultural landscape, the Sri Lankan government has outlined plans to expand its cultivation subsidy program to include twelve additional food crops on existing paddy fields. The announcement came on Monday, 2 November, as Deputy Minister of Agriculture and Livestock Namal Karunaratne confirmed the decision during a statement released to local media.

According to the Xinhua report citing the deputy minister, the new subsidies represent the first time that farmers growing crops other than paddy will receive the same financial support that is currently reserved for rice cultivation. The program, scheduled for the 2026‑27 Maha harvesting season, will offer 60,000 rupees per hectare for a total of thirteen crops, including paddy itself. The policy is projected to cost roughly 16 billion rupees.

Subsidy Mechanics and Farmer Eligibility

Karunaratne explained that eligible farmers may cultivate up to two hectares per individual under the subsidy scheme. His remarks came after earlier government delivery of subsidies at a rate twice that of the previous administration. Initially, a 30,000‑rupee per hectare support had been approved for eligible field crops grown on paddy lands, but the deputy minister later announced a doubling of this figure.

The decision follows guidance from the Cabinet, which authorized the premium subsidy during the 2026‑27 Maha cultivation season. Local outlet Ada Derana reported that the expansion would open the door for a broader array of crops to be grown on paddy farmland, creating new revenue possibilities for farmers who have traditionally focused on rice.

While the government has not yet released a definitive list of the twelve new crops, officials emphasized that each will meet criteria similar to the existing paddy program. The initiative is part of a broader effort to diversify agriculture and enhance food security amid shifting climate pressures.

Experts in agricultural economics have weighed in on the potential impact. One commentator noted that the subsidy change “could significantly alter land‑use patterns, encouraging farmers to diversify their belt of crops to mitigate market risks.” Another warned that the expanded program could strain the budget if actual uptake exceeds estimates.

There are also logistical considerations. The Deputy Minister mentioned that the scheme will employ the same administrative framework used for paddy subsidies, yet he emphasized the need for monitoring crop yields and ensuring that farmers adhere to the two‑hectare limit. Monitoring will be conducted by the Ministry of Agriculture’s field officers, in coordination with local agricultural extensions.

Political reactions have been cautiously optimistic. The deputy minister, who has been a proponent of increased farmer support, said “the subsidy will allow farmers to explore new opportunities while maintaining the stability that the paddy program has provided.” Opposition parties have urged that the program’s funding be clearly identified to prevent unexpected deficits.

Moving forward, the government plans to finalize the detailed regulations and initiate the distribution of subsidy vouchers early next year. Farmers who wish to apply can consult their district agricultural offices, which are expected to receive the requisite information by the end of the month.

Should the policy achieve the projected 16 billion‑rupee cost, it would become the largest single agricultural subsidy expansion in Sri Lanka’s recent history. By offering 60,000 rupees per hectare uniformly across thirteen crops, the Ministry hopes to stimulate agricultural diversification and strengthen livelihoods for farmers spanning the island’s paddy plains.

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