US$1 bn cost for organic fertiliser transformation

Sri Lanka’s transformation to organic fertiliser from chemical fertiliser would cost the country more than US$1 billion from the import of organic fertiliser, spare parts to manufacture machinery to produce manure locally and owing to the loss of export crop production, draining the country’s already-precarious foreign reserves.

Currently chemical fertiliser imports cost $400million annually but this will rise to $500 million for organic fertiliser to meet the requirement for the Yala and Maha seasons, official estimates revealed.

Additionally earnings from export crops -- tea, rubber, coconut, and other crops such as pepper, cinnamon, cloves, and cardamom – will drop by at least $1100 -1540 million from current revenue of around $2200 million per annum putting an additional burden on government finances, provisional government estimates indicated.

Export crop production is likely to fall by 30-50 percent sharply cutting export revenue as organic fertiliser results in lower yields than chemical fertiliser.

China is the only country which will be able to supply organic fertiliser at a cheap price compared to other exporters like Vietnam, Thailand and the Netherlands, official sources said, adding that the country also has to be careful not to import cheap, substandard fertiliser.

Also several millions of US dollars would have to be spent on the import of spare parts for the manufacture machinery needed for organic fertliser production locally.

Therefore this will not serve the government’s policy of import restrictions to save much needed foreign exchange and the policy goal of protecting foreign reserves, economic analysts said.

The massive reduction in output in other agri crops would make it difficult for farmers to survive unless farm gate prices more than double, market sources said.

The need to pay special attention on the production of fertiliser at the local government level has been highlighted at a top level meeting held under the patronage of President Gotabaya Rajapaksa, his office announced on Thursday.

He has emphasised the need to impart technical knowledge to these relevant institutions and use the raw material required for the production of organic fertiliser from the rural environment itself.

The President directed the officials to study the machinery required to produce organic fertiliser and manufacture machines that could be built locally with the assistance of the Sri Lanka Army Engineer’s Corps at state-owned factories and import the rest.

State Minister Mohan de Silva, Secretary to the President Dr. P.B. Jayasundera, Finance Secretary S.R. Attygalle, Secretaries and officials of the Ministry of Agriculture and state ministries were present at the meeting.

Currently chemical fertiliser imports cost $400million annually but this will rise to $500 million for organic fertiliser