Potato farmers mashed by imports
A special commodity levy imposed on potato imports has failed to help local farmers due to the increasing cost of cultivation, farmers claim.
Potato cultivators in the Uva province fear losing their livelihood as they could not compete with the prices offered by big-time potato importers.
The Ministry of Finance and Planning recently imposed a special commodity levy for imported potatoes and large onions. The levy on the price of large onions increased from Rs. 10 to Rs. 25 a kilo while that on imported potatoes was increased from Rs. 5 to Rs. 15 a kilo from August 12.
Mr. Sameera Gurusingha, a potato cultivator in Welimada, said most potato farmers in Welimada, Uva Paranagama, Bandarawela, Badulla and other areas were abandoning 25 years of potato cultivation as they are unable to make a profit and were turning to alternative crops.
He said imported potatoes had captured the market with low prices.
High costs in potato seeds, chemicals, insecticides, manure and labour had increased local production costs which had compelled potato growers to charge higher prices such as Rs. 50-60 a kilo to wholesale vendors, but at profit margins of only Rs. 10-15 a kilo, Mr. Gurusinghe said.
“We mortgage our properties to buy the components that we need for potato cultivation but we don’t get enough profits to pay the mortgage and regain our belongings. We have to use the income to begin the next cultivation.”
He said that they had been purchasing 50kg of potato seeds from the government affiliated centres for Rs. 3,000-4,000 but currently have to buy from private companies at a cost of Rs. 13,00014,000. A pack of manure now cost Rs. 1,500 when the government provided the same for Rs. 100 seven eight years ago.
Potato growers also had to pay commissions to the economic centres in their area to store their products.
Mr. H. M. Karunaratna, President of the Combined Cultivators Association of Ambewella Irrigation Project, said the retail price of imported potatoes was Rs. 50-60 a kilo in Welimada when local potatoes were being sold for Rs. 120-130.
He said that Government Seed Production Farms should be administered and reinstated to provide seeds to cultivators to continue their professions with ease without letting blue
The Director General of Department of Trade & Investment Policy, Mr. R. Semasinghe maintained the recent commodity levy would cause a reduction in imports and allow local farmers to get a fair price.