One of the causes of the economic crisis in Sri Lanka is the decision of the Rajapaksa government to suspend the use of chemical fertilizers. The move to organic farming was not planned. The port in the north of the country will be expanded by the end of the year with a loan from India of 40 million dollars.
Colombo () – India has offered a credit line of 55 million dollars granted by the Exim Bank of India for the purchase of 65 thousand tons of urea-based fertilizer. The financial aid to Sri Lanka is part of the “Neighborhood First” policy and will also be used to develop the port of Kankasanthurai (KKS) in Jaffna.
According to sources from the Ministry of Agriculture, the fertilizer stocks purchased through the Indian credit line will be used during the cultivation of the Maha season (the northeast monsoon season from September to March). The ship carrying the cargo left Oman on July 2, the ministry added, so the supplies are expected to arrive early next week.
In April 2021, the Sri Lankan government led by Gotabaya Rajapaksa banned the import of chemical fertilizers in favor of organic and biodynamic agriculture. But the decision caught farmers off guard and led to the loss of entire crops, resulting in loss of income for farmers and a serious food crisis.
The government failed to take into account the technological, environmental, and economic costs of an unplanned switch from chemical to fertilizer-free farming, and the economic losses are estimated to exceed $1 billion.
Several farmers in Polonnaruwa, Ampara and Monaragala, the main rice-producing areas in Sri Lanka, explained to that the arrival of chemical fertilizers will be a blessing for farmers who had “given up sowing” because the rice seeds they had available they only responded to chemical fertilizers. The government, they added, would have to provide other types of seeds, compatible with organic fertilizers, if it wants to develop biodynamic agriculture.
Sources from the Ministry of Agriculture told that the government planned to sell a 50-kg bag of fertilizer at the subsidized price of 15 thousand rupees (about 40 euros), but farmers’ associations said they could not buy it at that price. in the current circumstances and proposed 10 thousand rupees per bag (27 euros). A 50-kg bag is sold on the black market at a price of 43 thousand rupees (116 euros).
Agriculture Minister Mahinda Amaraweera ordered officials to keep 2,000 trucks “on standby” to distribute fertilizer stocks and also issued an official government document asking the Ceylon Petroleum Corporation to make available more than 20 million liters of fuel for guarantee transportation.
As Prime Minister Ranil Wickremesinghe pointed out, ensuring the “food security of the population” is the government’s priority. Sri Lanka, after declaring default in April, has been facing serious shortages of fuel and food for months, including rice, which is the staple food of the population.
At the same time, Sri Lanka intends to expand the port of KKS thanks to a $40 million loan from India, as currently only small ships can dock there.
The Sri Lanka Port Authority told that the goal is to finish the expansion of the port by the end of 2022. The port will serve to establish a cargo transport route between India and northern Sri Lanka, promote tourism between the two countries and organize the internal transport of goods between the KKS and the local ports of Colombo, Trincomalee, Jaffna, Galle and Oluvil. Although the expansion of the port has been planned for a long time, the project could not be carried out due to political opposition. Economic analysts also believe that, once transformed into a commercial port, the KKS will function as a national and regional maritime hub.
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