WELFARE EFFECTS OF GOVERNMENT INTER VENT10N IN RICE MARKETING: CASE FOR SRI LANKA

The fertilizer subsidy, producer price supports were the key short run policies for rice production in Sri Lanka. The removal of fertilizer subsidy results in a loss of producer and consumer welfare. The gain in producer and consumer welfare due to a change in producer price support for rice would be lesser than the loss through fertilizer subsidy. The increases in the value of food stamps have no significance on rice production In the country