Sri Lankan food prices to soar amidst fertiliser crisis
The global fertiliser crisis is expected to severely impact Sri Lanka’s paddy, maize and tea production yields as prices skyrocket to unprecedented levels.
Sri Lanka’s last fertiliser shipment has been bought, a consignment of 25,000 metric tonnes (MT) at US$650 per MT while the next shipment of 25,000 MT due before May 15 is at $800 per MT.
In the meantime, Sri Lanka is in talks with the Chinese authorities to purchase another 25,000 MT of fertiliser at a time when the latter has restricted such exports due to the global shortage.
File picture of farmers.
The Yala season is set to bring about a drop in paddy yields from 15-20 per cent and over a 30 per cent drop in maize production (crucial for animal feed), Peradeniya University Crop Science Snr. Prof. Buddhi Marambe told the Sunday Times Business on Thursday.
He explained that under the current conditions Sri Lanka needs to focus on the next Maha season which is expected to be crucial.
As a result of the current global price hike in fertiliser the impact will be mainly felt by farmers unable to purchase these stocks at high prices.
This will lead to farmers utilising less fertiliser resulting in yields dropping significantly, Prof. Marambe said.
Moreover, another concern is that with maize production reduced there will be a concern as rice will then be used for animal feed as well as beer production, it was noted.
With yields dropping and prices surging in terms of cost of production, crops will become too expensive to purchase by the ordinary masses.
Due to the increasing price of fertiliser President Anura Kumara Dissanayake has stated at a meeting held two weeks back with fertiliser importers and the Ministries of Agriculture and Plantation that the government is planning to provide some relief.
The President is said to have assured importers that the government will provide fertiliser at subsidised rates particularly for the paddy farmers.
The government is still burdened with old fertiliser debts gone unpaid for the years 2018 and 2021 that has accumulated to Rs.4.8 billion.
The World Bank has forecasted that global fertiliser price increases is expected to result in a 20 per cent increase in the current 300 million people suffering from acute food insecurity.
Blocking the Strait of Hormuz., which sees 20 per cent of the global oil supply passing through, has sent fertiliser prices soaring since they rely on oil-based inputs.
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