Impending fertiliser crisis for Yala
Global prices of fertiliser is currently decreasing as a result of which importers want to stock up ahead of the next Yala season but with no cash in hand and banks refusing to part with dollars, Sri Lanka is likely to face a fertiliser shortage once again.
“We are struggling with the banks to try to get some more fertiliser,” one importer said adding that the they were also facing trouble due to the non payment of their previous subsidy payment by the Treasury that still owes them over Rs.5 billion.
Importers warn that if the stocks of fertiliser are not ordered at least by mid February Sri Lanka is likely to face another crisis during the Yala season as a result of a delay in importing chemical fertilisers in time for the next farming season that begins in June.
As in previous years the international market prices of fertiliser is coming down by US$200-250 per MT which could translate to Rs.10, 000 per bag of fertiliser from the earlier Rs.15, 000 per bag.
Sri Lanka usually imports 500,000 MT of fertiliser per year but at present only about 15,000 – 20,000 MT of fertiliser in total by the industry have so far being ordered. Importers mainly the smaller ones are trying to import in smaller quantities as a result of the crisis situation.
Fertiliser importers had already purchased Muriate of Potash ( MOP) and Sulphate of Ammonia (SOA) that arrived in December and now the need is for urea.
China which is a heavy supplier of urea is continuing its ban on urea exports as a result of which importers will move to other markets. Prices of urea too have come down in the global market by about 10-15 per cent but remain very high compared to August / September of last year.
Agriculture Minister Mahindananda Aluthgamage told the Business Times that they do not hope to repeat the mistakes they made during the Maha season adding that they will provide farmers with the “correct” fertiliser.
He noted that last season they were unable to provide quality fertilisers in the form of bio liquid and even compost but this will not happen again.
“We have to bring some nitrogen source and potassium chloride and we are importing them and will give the nitrogen especially for the dry zone,” he said.
Experts however, argue that the use of chemical fertilisers and organic fertiliser is a proposal put forward which authorities need to heed to ensure a sustainable farming. But the minister pointed out that this integrated approach to farming will not be adopted as they do not wish to promote the use of chemical fertilisers in farming.