Unfair fertiliser price hike due to shortage

Sri Lanka is currently facing a price increase in imported chemical fertiliser as a result of the increased demand and shortage of supply, coconut growers complained.

Coconut Growers Association (CSA) President Jayantha Samarakoon told the Business Times that the price increase in imported chemical fertiliser is a result of a shortage in the market and increased demand for the product.

He noted that currently there is an increased demand by the vegetable grower who were capable of increasing their prices.

But the coconut, tea and rubber growers are facing a crisis since they are unable to increase prices despite the increase in cost of production.

Mr. Samarakoon explained that some of the main importers of fertiliser are marketing at high prices which would send the cost of coconut to about Rs.75.

Currently the farm gate price per nut is

Rs.65 and as a result coconut growers would face a loss if they had to purchase the expensive fertiliser available in the market.

The cost of fertiliser in the world market, he said is at US$600-700 per tonne which would be about Rs.220 per kg which would amount to about Rs.12, 000 per bag.

Mr. Samarakoon noted that they have made requests from the Treasury to allocate $50 million to obtain the annual requirement of fertiliser for the coconut growers.

Mr. Samarakoon noted that the nuts per acre have come down by about 20-30 per cent which is normal from November to February.

But going further the yield is expected to come down due to the lack of application of fertiliser for a period of three years.

This year the industry is expected to achieve production of 3100 million nuts compared to 3300 million nuts in 2021. The production in 2023 is expected to come down further to 3000 million nuts, the CSA President said.