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Fuel Price Hike Puts Pressure on Agriculture, Food Prices May Rise

March 23, 2026

Farmers’ associations say the recent increase in fuel prices has had a severe impact on the agricultural sector.

Vegetable traders in Keppetipola report that transportation costs for vegetable stocks have risen significantly, warning that the up-country vegetable trade could face serious disruption if the situation continues.

At the same time, rice producers have indicated that an increase in rice prices is becoming unavoidable.

They say higher fuel costs have placed a heavy burden on both production and distribution, affecting overall supply chains.

Producers estimate that the price of a kilogram of rice may need to be increased by more than Rs. 10 to offset the rising costs.

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