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Fertiliser imports: Farmers consulted on private sector import option

24 Jul 2022

By Asiri Fernando The Agriculture Ministry has begun a consultation process with farmers and growers to explore the possibility of a change to the fertiliser supply system in preparation for the upcoming Maha cultivation season, The Sunday Morning learns. Minister of Agriculture and Forestry Mahinda Amaraweera told The Sunday Morning that the consultation process was aimed at gauging the farmers’ views on the possibility of them buying the fertiliser required for their cultivations from the private sector by utilising a Government subsidy system, which may involve a voucher or a fund transfer. According to Amaraweera, the Government is considering allowing the private sector to take the lead in importing fertiliser to Sri Lanka due to constraints faced in the procurement process, such as delays in closing tenders and funding issues. “The private sector may be able to source fertiliser at a more competitive rate and import it faster than through our procurement process,” Amaraweera opined, adding that the consultation process with farmers would be expanded to get the views of many farming communities prior to a decision being made. The prevailing economic situation and the drop in State revenue have significantly constrained the Government’s purchasing power for critical imports such as fertiliser, fuel, and coal. Fluctuations in international markets and the Russia-Ukraine conflict have driven up fertiliser prices worldwide. Minister Amaraweera said the Government was evaluating the possibility of issuing a voucher or a direct fund transfer to the farmers’ bank accounts, if the Government allowed the private sector to take a more prominent role in fertiliser importation, so that the end user would have control of their fertiliser purchases.  The Minister stressed that a decision allowing private companies to import large volumes of fertiliser would be made only after the consultation process was concluded and following discussions with line ministries and the Central Bank of Sri Lanka (CBSL). He also stated that the current system was leading to wastage, as some farmers were ordering more fertiliser than needed.   


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