Additional fertilizer subsidy announced for small tea estate owners

The government has announced an additional subsidy of Rs. 5,000 per 50 kg fertilizer bundle for small tea estate owners, to be provided once this year under the QR code-based distribution system, according to the Ministry of Plantation and Community Infrastructure.

As of March 31, a total of 226,511 tea farmers have registered under the QR code-based tea fertilizer distribution system, with 187,759 small and medium-scale tea farmers already receiving 21,117.7 metric tons of subsidized fertilizer.

Currently, the government provides a subsidy of Rs. 4,000 for a 50 kg fertilizer bundle and Rs. 2,000 for a 25 kg bundle. So far, 334,256 units of 50 kg bundles and 176,199 units of 25 kg bundles have been distributed to farmers, the Ministry stated. 

The Ministry noted a significant increase in distribution compared to the 2024/25 period, during which only 84,472 farmers received subsidized fertilizer. 

Meanwhile, under the new system, 187,759 farmers have benefited within six months, marking a 122.3% increase compared to the previous year.

Although 13,015.50 metric tons of fertilizer were issued during the previous year, approximately 21,117.7 metric tons had been distributed under the new QR code system by the end of March 2026, reflecting a 62.2% increase, according to the statement.

The statement said that the government has also decided to provide a special fertilizer subsidy for small tea estate owners due to the ongoing Middle East conflict.

Accordingly, in addition to the existing subsidy, the Treasury has allocated an additional subsidy of Rs. 5,000 per 50 kg fertilizer bundle to be provided only once this year.

The Ministry states that the new subsidy of Rs. 5,000 is also planned to be provided to small tea estate owners before the end of the year under the QR system.

The Ministry further stated that the initiative aims to increase tea production to 400 million kilograms and generate export earnings of USD 2.5 billion by 2030.