News
Fertiliser importers tell Govt. to settle arrears of Rs. 26b
Private sector fertliser companies are demanding that the Government should settle an arrears of Rs 26 billion for stocks previously provided under the state-subsidy scheme for farmers.
The companies have pointed out that the money was long overdue and needed as they were preparing to go ahead with the fertiliser imports for farmers after the Government lifted restrictions on imports.
Private companies brought up the issue with Agriculture Minister Mahindananda Aluthgamage this week when they were called into discuss arrangements to provide fertiliser for the upcoming cultivation season.
The Sunday Times learns that the companies have pointed out they have run into a crisis over raising US dollars for imports and, therefore, the Government should settle the outstanding dues.
Some 15 companies were represented at the meeting. Among them were Hayleys Agro, CIC, Baurs and Agstar.
Despite the Government revoking its decision to ban chemical fertiliser imports from last month, the private companies have been slow in getting back to imports, thereby leaving the farmers in a crisis.
A senior Agriculture Ministry official who attended the meeting said Minister Aluthgamage had contacted Treasury Secretary S.R. Attygalle, who in turn had assured that the arrears would be paid in instalments from next month though the full amount could not be paid.
However, the Peradeniya University Agriculture Faculty’s senior professor, Buddhi Marambe, said most countries, including China and India, were now facing shortages of urea and the prices too had shot up.
He said that even if Sri Lanka resumed importing fertiliser it would take about two months for stocks to come here.
The Government has taken a policy decision that no subsidies will be offered for chemical fertliser and the schemes will be applicable only to organic fertiliser production and usage.
The Agriculture Ministry also has called for a report from the private sector companies about the proposals on imports to monitor the imports and ensure that there is no oversupply, the ministry official said.
He said they would also be monitoring the prices, though no control had been implemented.
Meanwhile, the non-availability of fertiliser and pesticides in time has seriously affected the crop production of vegetables resulting in an unprecedented price increase in the markets. (See related stories inside.)
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