Sri Lanka's Agriculture Minister, Mahinda Amaraweera, has proposed the imposition of import duties on potatoes and B-onions to regulate market prices and manage import levels. This strategy aims at stabilizing prices by adjusting tax rates in response to market shortages.
The cultivation of potatoes and big onions was initiated in the 1980s under President J.R. Jayewardena, as part of efforts to substitute imports and protect local agriculture. These crops have been under protection for decades, reflecting a broader trend of economic reforms and challenges, including a shift towards an open economy in 1977-78, followed by inflation and currency devaluation issues.
The consideration for new taxes arises amidst a backdrop of economic hardship, with a significant portion of the population affected by a currency crisis in 2022. The poverty rate in Sri Lanka surged, affecting 31% of the population, or an increase of 4 million people. These measures are being discussed despite the economic strain on the populace, highlighting the government's efforts to balance agricultural policy with economic realities.
Source: economynext.com