Sri Lanka's Agriculture Ministry has completed a production cost analysis for paddy varieties cultivated in the 2026 Yala season, establishing baseline figures that will inform the government's guaranteed purchase price policy.
The Ministry of Agriculture, Livestock, Land and Irrigation has released a comprehensive report detailing the production costs for various paddy varieties grown during the 2026 Yala season. Agriculture Minister K.D. Lalkantha announced the findings at a farmers' meeting in Anuradhapura, noting that the report was developed collaboratively by multiple government institutions including the Department of Agrarian Development, the Department of Agriculture, the National Institute of Post Harvest Management, and the Hector Kobbekaduwa Agrarian Research and Training Institute.
The report establishes distinct production costs for each paddy variety. Red Nadu paddy costs Rs. 76 per kilogram to produce, while White Nadu paddy reaches Rs. 87 per kilogram. Samba paddy production costs Rs. 97 per kilogram, with Keeri Samba representing the most expensive variety at Rs. 119 per kilogram.
According to Minister Lalkantha, the government has adopted a pricing mechanism that adds a 30% profit margin to production costs when determining guaranteed purchase prices for farmers. This policy responds to longstanding requests from agricultural organizations seeking more predictable income. The cost calculations incorporate the government's existing fertilizer subsidy program, which provides Rs. 30,000 per hectare to cultivators.
The Minister highlighted that despite domestic paddy production efforts, Sri Lanka continues to rely heavily on imports for essential food commodities including potatoes, onions, wheat flour, rice, and basmati rice, underscoring the ongoing importance of supporting local agricultural production.
