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AgStar, retailer fined over fertilizer price tampering

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The Matara Magistrate’s Court has imposed penalties on a major fertilizer distributor and a local retailer after they were found guilty of tampering with fertilizer pricing, in a case that authorities say undermined the interests of farmers and violated fair trading regulations.

The court action followed a raid conducted by officers of the Consumer Affairs Authority (CAA), during which investigators discovered that the officially printed Maximum Retail Prices (MRPs) on 50-kilogram Urea fertilizer sacks had been erased before the products were offered for sale. The accused subsequently pleaded guilty to the charges.

As part of the ruling delivered on June 3, 2026, AgStar PLC, the distributor involved in the case, was fined Rs. 100,000 and handed a three-month suspended prison sentence. Meanwhile, Perera Agro Center in Matara, the retailer implicated in the offense, was fined Rs. 10,000 and received a one-month suspended prison sentence.

In addition to the penalties, the court ordered the confiscation of 179 sacks of 50kg Urea fertilizer that had been seized during the CAA operation. Authorities emphasized that altering or removing price markings not only exploits farmers but also constitutes a serious breach of consumer protection and fair market practices.

Following the verdict, the Consumer Affairs Authority urged farmers to carefully inspect the Maximum Retail Price printed on fertilizer sacks before making purchases. The authority also advised customers to obtain official receipts for all fertilizer transactions and to remain vigilant for any signs of price tampering.

Officials further encouraged the public to report any suspected violations involving fertilizer pricing or other consumer-related offenses. Complaints can be submitted through the Consumer Affairs Authority’s hotline, 1977, during official working hours. 

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