Sri Lanka has increased the tax on imported potatoes from Rs 15 to Rs 25 per kilo (from USD 0.11 to USD 0.19) to protect the interests of local potato farmers.
This order is in effect for next four months.
The consumption of potato in Sri Lanka has increased three fold. The country produces only 40 percent of the total requirement and therefore spends a huge sum of money annually to import potatoes.
There are around 50,000 potato farmers in Sri Lanka. The government provides incentives for farmers to increase the production of potatoes. The government would not be able to safeguard their interests without imposing tax. Nearly 2.6 million people depend on agriculture in the country. That is why the government provides a bag of fertilizer for farmers at a discount.
