Billion rupee problem for RPCs
In the wake of overgrown weeds on tea estates due to the non-use of herbicides, regional plantation companies (RPCs) have been given another Rs.1 billion infusion to also tackle growing cost of production endangering the crop’s export prospects.
The Rs.1 billion allocation has been made almost at the same time that the Ajitha De Costa appointed-committee, submitted its report, on the way forward after the glyphosate (herbicide) ban was imposed. The report has been handed over to Prime Minister’s advisor R. Paskaralingam last week.
Contrary to local beliefs and industry assertions, the herbicide is under global scrutiny since it was found in 2015 to be cancerous by the International Agency for Research on Cancer, attached to the World Health Organisation (WHO).
The RPCS have been in a quandary since the glyphosate ban was imposed resulting in losses being accrued in addition to increased costs of production and sale of tea at higher prices and dry weather on the plantations adding to the problems.
Mr. Paskaralingam is expected to forward this report to Prime Minister Ranil Wickremesinghe and thereafter to the Cabinet.
Two representatives of the 8-member committee appointed by the PM are believed to have “voiced concerns” regarding the lifting of the ban on glyphosate imports to the country.
The government was pressured into banning this herbicide last year, committee sources say adding that medical doctors have said that they had not yet established a link between the use of glyphosate and the chronic kidney disease that was rampant in certain parts of the country.
The committee has fallen short of finding a solution to the problem or providing evidence strong enough to call for the re-import of the herbicide.
However, it is learnt, that glyphosate is currently available in the black market and is being used by tea smallholders.
The committee has also found out that the plantation companies have lost “a couple of billions of rupees” as a result of the herbicide not being made freely available in the market.
Glyohosate is considered one of the cheapest herbicides and is widely used even in home gardens in most countries. However, today there is a growing concern internationally resulting in the EU citizens also engaged in collecting a million signatures that would force its authorities to act against the use of glyphosate since it has been found to be cancerous.
Though countries like Kenya and India were said to gain an edge over Sri Lanka’s teas due to pricing the re-introduction of glyphosate could have repercussions, according to a WHO report.
The committee is also believed to have observed that currently there is an EU standard for the use of glyphosate in agricultural produce and was noted to have “not been banned anywhere else worldwide”.
But reports indicate that while the Netherlands and Argentina have already banned glyphosate, a number of EU countries are likely to do the same later this year. Even countries like Malta had proposed a ban.