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Sri Lanka to pay compensation for failed organic farm drive

A million farmers whose crops failed under a botched scheme to establish the world’s first 100-percent organic farming nation will be compensated.

Sri Lanka has announced compensation for more than a million rice farmers whose crops failed under a failed scheme to establish the world’s first 100-percent organic farming nation.

Sri Lanka’s Cabinet of Ministers has decided to award Rs. 50,000/- per hectare for all cultivation that were damaged during the 2021 Maha Season.
Minister of Agriculture, Mahindananda Aluthgamage elaborated on the decision, stating that the Government will pay 50,000 Rupees each for 1.1 Million farmers who cultivated in 800,000 hectares during the Maha cultivation season.

Moreover, he said that the Government also took steps to purchase a kilogram of rice for Rs. 90, 92 and 95, thereby giving it a good price.
The island nation is currently reeling from a severe economic crisis that has triggered food shortages and rolling blackouts as the COVID pandemic sent the tourism-dependent economy into a tailspin
Agricultural chemicals such as fertiliser were among the imports banned last year as authorities tried to save dwindling foreign currency reserves. The restrictions were lifted months later after farmer protests and crop failures.

The Cabinet of Ministers had previously granted approval to prepare an appropriate scheme of compensation in consultation with the General Treasury to pay a compensation of rupees 25/- per one kilogram of paddy in order to secure the income level of farmers who affect due to declining of paddy harvest during the Maha season 2021 / 2022.
Accordingly, a methodology has been prepared to pay the compensation that is calculated based on the relevant criteria as an evaluation incentive limited to an extent of the agricultural area of 05 acres to the maximum so that small – scale farmers, as well as small and medium level farmers, would be able to obtain the relevant incentive allowance.

The Cabinet of Ministers approved the resolution furnished by the Minister of Agriculture for implementing the said methodology and for remitting the required funds to the Department of Agrarian Development by the State Minister of Organic Fertilizer Production.

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