This sounds like a government program with good intentions but no actual understanding of what needed to be done.
First off both organic and conventional farming methods do acidify the soil. Contrary to what these farmers think organic/traditional farming does it much more rapidly.
Higher rainfall zones also naturally have more acidic soils. Traditionally cultures have temporarily overcome this by burning the vegetation (slash and burn).
If 70% of the soil in the country is acidic the government program should have been to subsidize lime application and soil testing first. Lime is much cheaper than fertilizer anyways and balancing out the pH makes all nutrients more available.
They could have then subsidized the appropriate usage of fertilizer based upon the test results. Blindly applying any type of fertilizer is a recipe for disaster. Fertilizers must be applied in balance for the crop, soil type, pH, and the nutrients.