Annual Report 2008 - Ministry of Finance and Planning

7. Development Finance
270
Chart 7.3
Table 7.8
Value of the subsidized component as a percentage of
market price
Average Subsidized Subsidized
Varity market price price of amount as a
Fertilizer of 50kg 50kg bag percentage of
bag in 2008 Rs. Rs. market price
Urea 3490 350 90
TSP 5850 350 94
MOP 4225 350 91
Source: Department Of Development Finance
In an effort to ensuring that the major fertilizers are available
at Rs. 350 per 50 kg bag for the paddy sector, more than
90 percent of the cost of the fertilizer was borne by the
Government.
The Urea fertilizer subsidy which was granted for the
smallholder plantation sector less than 5 acres was extended
up to 50 acres in order to provide relief to the much needed
foreign exchange earners in the tea sector. The subsidized
fertilizer for the paddy sector was being distributed through
the state fertilizer companies machinery along with the
distribution arm of the Agrarian Services Centers, Cooperatives,
Mahaweli Authority etc. while the plantation sector
was catered basically by the private fertilizer companies.
Chart 7.4
District wise Fertilizer Distribution under the Subsidy Scheme - 2008 (Mt)
Ministry of Finance and Planning Sri Lanka
Annual Report 2008