Sri Lanka: Fertiliser crisis (and the Gulf War) cripple the agricultural sector

The alarm has been raised by the president of the National Farmers’ Union. Harvests in the coming Yala and Maha seasons are at risk, with the threat of a severe food shortage. Around 130,000 tonnes of fertiliser are needed for rice, but stocks stand at just 60,000 tonnes. For industry operators, the problem reflects a deeper structural vulnerability.

Colombo (AsiaNews) - The fertiliser crisis is bringing Sri Lanka’s agricultural sector to its knees. The alarm has been raised by Anuradha Tennakoon, president of the National Farmers’ Union, who warns of negative repercussions on harvests, including rice cultivation during the Yala and Maha seasons, with the risk of a severe food shortage.

The Maha season runs from September to March and is driven by the north-easterly monsoon, whilst the Yala season runs from May to August and relies on the south-westerly monsoon. Experts warn that the situation is made even more difficult by the war in the Gulf, which is paralysing transport.

Around 130,000 tonnes of fertiliser are needed for rice cultivation this season, but currently only 60,000 tonnes are available in the country. Although water has already been released for the Yala season, fertiliser is essential for a good harvest. As highlighted by the Union at a recent press conference, this problem would drive up fertiliser prices, thereby also increasing production costs and food prices for the public.

“The government has imported fertiliser at a price above the market rate, amounting to around 0, although some time ago it was possible to obtain it from Russia for 0. ‘Due to fraud and mafia-style activities in the sector,’ explained Anuradha, ‘the average farmer would be forced to buy a bag of fertiliser at a higher price, ranging from 15,000 to 20,000 rupees.’

“ In total, almost one million tonnes of fertiliser will need to be imported for rice cultivation alone, but so far no action has been taken to initiate purchases. Due to global market conditions, the price of fertiliser has risen to around 0 per tonne, which could push the price of a 50-kg bag to over 20,000 rupees if imported at current rates. Fertiliser imports, which arrive mainly by sea from Middle Eastern countries, including Oman, could face serious disruptions – the expert concludes – due to the ongoing conflict in the region, increasing the risk of a severe shortage”.

Researchers Samadhi Alagiyawanna and Rajiv Samarasinghe tell AsiaNews that “around 550,000 tonnes of urea are needed annually for the cultivation of rice, tea, vegetables and maize. However, only 60,000 tonnes of stock are currently available.

The total annual requirement for fertilisers is around 650,000 tonnes. The current conflict in the Middle East is also having a serious impact on fertiliser imports”, which, given their chemical composition, cannot be “stored for a long period, such as two years”.

“Although the government and agricultural authorities have stated that sufficient stocks are available and have urged farmers to continue cultivation, the latter are concerned as rice prices” have risen considerably.

“The government,” the experts continue, “has failed to utilise the Eppawala phosphate deposit to produce fertilisers locally, a serious shortcoming at a time when the country is facing a potential agricultural crisis.”

According to agronomists Amanda Mendis and Nilantha Illeperuma, “the agricultural sector is facing renewed instability due to the surge in global fertiliser prices and the strains on supply chains caused by the escalating conflict”.

“Due to recent import disruptions, including the cancellation of a fertiliser order by a Middle Eastern supplier, concerns are growing,” they warn, “regarding both the availability and affordability of essential inputs.”

For operators, “the crisis goes beyond short-term price rises and reflects a deeper structural vulnerability in the country’s agricultural model, as traditional cost-setting systems are no longer adequate in a context characterised by geopolitical shocks, volatile markets and supply-side competition”.

Currently, global fertiliser prices have risen sharply, from around 0 per tonne to over 0 in a short period.

“This drastic increase, largely driven by supply disruptions linked to the Gulf crisis, is already impacting domestic production costs. However, price is only part of the problem. Availability itself is also uncertain, as wealthier nations are securing supplies – conclude Amanda Mendis and Nilantha Illeperuma – ahead of smaller economies dependent on imports, such as Sri Lanka.”

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