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Fertilizer to be gazetted an essential commodity under price control
The Government will impose strict price controls on fertilizer, through a gazette notification expected next week, declaring fertilizer an essential commodity.
Under the Government price controls, a 50kg bag of ‘straight fertilizer’ will be sold to paddy farmers at Rs 500, while for those planting other crops it will be Rs 1,500. Straight fertilizers supply only one primary plant nutrient. There are currently 3 types of straight fertilizers sold in the country; Urea, Triple Superphosphate (TSP) and Potassium Chloride, also known as Muriate of Potash (MOP).
Agriculture Minister Mahinda Amaraweera told the Sunday Times that he officially requested the Minister of Industry & Commerce, Rishad Bathiudeen, this week, to gazette fertilizer as an essential commodity. While the gazette has yet to be issued, the Minister claimed that, the news that fertilizer was to be made essential, had persuaded many traders to stop selling fertilizer at higher prices.
Authorities say the price controls will also apply to various ‘mixed fertilizers’ being sold on the open market. Mixed fertilizers are a mixture of straight fertilizers and sold at exorbitant prices, placing farmers in severe difficulties.
National Fertilizer Secretariat Director Ajith Pushpakumara said they were currently drawing up a pricing list for mixed fertilizers, which the Secretariat hopes to publish once the gazette on fertilizer is issued. “When pricing mixed fertilizers, factors such as blending costs, back costs and dealer margins will be considered,” he added.
“The main reason for making fertilizer an essential commodity is to prevent various acts of corruption taking place in the sale of fertilizer,” he further stressed. There were many who were mixing the fertilizers sold at subsidized rates and selling them as fertilizer for various crops other than paddy. Some traders were selling a bag of ‘mixed fertilizer’ for between Rs 2,500-Rs 3,000. Once the gazette is issued, the Consumer Affairs Authority (CAA) under the Ministry of Industry & Commerce, will be empowered to take action against such traders.
Minister Bathiudeen is currently overseas and expected back on Monday (28). A senior official at the Ministry of Industry & Commerce claimed that, gazetting fertilizer as an essential commodity has not been done before, and would require extensive discussions. “We expect to take a decision next week once the Minister returns to the country,” he added.