Fertiliser Procurement: $250m loss per season alleged

The National Agrarian Unity has accused the Government of causing a financial loss of US$ 250 million per agricultural season by purchasing fertiliser from Middle Eastern suppliers at higher prices, despite cheaper alternatives being available.

Speaking to The Daily Morning yesterday (3), the organisation’s President Anuradha Tennakoon said that Sri Lanka has the option of sourcing urea from countries such as Kazakhstan at significantly lower rates. “We have learned from reliable sources that Kazakhstan is willing to supply fertiliser at around US$ 200-300 per metric tonne (MT). However, we are buying from countries like Oman at prices between US$ 500 and 800,” he said.

He claimed that this pricing difference results in a substantial financial loss. “The country’s annual fertiliser requirement is around 50,000 MTs. This results in a loss of approximately US$ 250 million per season,” he said.

Tennakoon also urged the Government to pursue diplomatic engagement with Kazakhstan and secure a more cost-effective supply arrangement. “If such a deal is reached, farmers will be able to purchase a 50 kg bag of fertiliser for around Rs. 7,000 to Rs. 9,000,” he said.

Fertiliser pricing and availability have remained a key issue in Sri Lanka since the onset of recent global and regional crises, including disruptions linked to the Middle East.

Attempts to contact Agriculture Ministry Secretary D.P. Wickremasinghe were unsuccessful.

Source - The Morning