Budget 2006 – Rebuild the agro sector to support the rural economy

Presenting his maiden budget, President Mahinda Rajapaksa said his government would rebuild the agro sector to support the rural economy. Presenting his maiden budget, President Mahinda Rajapaksa said his government would rebuild the agro sector to support the rural economy. Key inputs to develop the rural agro economy will include special loan shchemes, subsidized fertilizer and technology transfers.

The budget also proposes to increase paddy buying prices at the next Maha harvesting season to go up to Rs. 17.50 per kilo from Rs. 16.50 now.

Fetiliser prices will keep to the proposed Rs. 350 price tag for a 50 kg bag.

Rajapaksa added that the government would also help the rice sector move beyond paddy processing and into value addition and food processing industries.

The fisheries sector would also see a policy shift, with the government hoping to promote multiday fishing fleets and allied processing industries.

The inland fisheries industries will also get incentives to develop.