'Stakeholders should help resolve fertiliser shortage'

The Planters' Association of Ceylon (PA) sources warned of a shortage of fertiliser which will have a detrimental effect on the plantation industry.

The PA whose mandate is to promote, foster and protect the plantation industry has appealed to all stakeholders to come together to resolve the fertiliser crisis.

Fertiliser subsidies are provided by the Government for paddy and plantation crops (tea, rubber, and coconut). Import and distribution of fertiliser is carried out by different institutions. The Government's fertiliser scheme enables importers to sell the fertiliser at a subsidised rate and seek a rebate from the Government. However, the rebate process itself is cumbersome and takes a long time to be realised discouraging importers.

Adding to the dilemma, the ballooning subsidy bill has caused growing concern to the Government resulting in a cap on fertiliser imports.

"The shortage and the ill-timing of fertiliser application will result in loss of crop, reduction of green leaf quality, leading to a detrimental effect on tea quality and the inability of estates to offer a sufficient number of days work to workers due to lack of crop," said Chairman, Planters' Association of Ceylon, Roshan Rajadurai.

"Regional Plantation Companies produce around 20-23 million kgs of tea in the first quarter of the year. Due to the lack of fertiliser, we may lose about 6-7 million kg of made tea incurring a loss of Rs. 2.7 to 3 billion revenue," Rajadurai said.

The shortfall will have an impact on thousands of hectares managed by Regional Plantation Companies (RPCs) which account for more than 30% of national tea production.

"What is significant is that fertiliser has to be in place for application in April and May with the onset of rains as these are the high cropping periods of the year. New clearings that have being planted must receive timely application of fertiliser if they are to survive," he said.

"Any reduction of fertiliser will retard growth and the physiological health of young tea plants and it will have a long term negative impact on new clearings," Rajadurai said.

Chief Executive Officer of the Sri Lanka Tea Factory Owners' Association (SLTFOA), Gehan de Livera said, "In 2013, there had been disruption in the supply of fertiliser, and was not available when needed. This year too has started in a similar fashion."

He said that the perennial shortage of subsidised fertiliser was gravely affecting their members. There are an estimated 400,000 tea smallholders registered in Sri Lanka, and as many as two million people dependent on them. These smallholders, who by definition hold lands amounting to less than two acres, contribute as much as 70% of national production.

"If this situation is not resolved quickly, the tea industry will suffer adverse effects in 2014," de Livera said.

"The shortage of fertiliser in the market is a major problem which has to be solved immediately. All stakeholders, including the Government, state manufacturing companies and the private sector have to cooperate to reach a solution, as around 45% of the fertiliser is going to manufacturing government bodies," said Chairman of the Sri Lanka Federation of Tea Smallholder Development Societies, Neville Ratnayake.

"The fertiliser shortage is a serious problem" said Professor of Plantation Management at the Faculty of Agriculture and Plantation Management of Wayamba University, Prof. Asoka Nugawela.

He said, "The main impact on rubber plantations will be that they were unable to follow the RRI (Rubber Research Institute) recommendations on fertiliser application leading to a decline in performance."

RPCs currently account for about 40% of the national rubber production, The RRI recommends immature or young rubber trees to receive four applications of fertiliser, (i.e. once in every three months) per annum. Due to the scarcity certain companies complete only three applications.

"I know several companies were unable to fertilise their mature rubber trees in 2013. If this happens in 2014 as well, the yield will decline, and there will be a similar drop in land and work productivity. This would mean a higher cost of production, which coupled with the stagnant rubber prices would mean that plantation management companies would find it difficult to cope," he said.

Missing the recommended number of applications could lead to a smaller crop and lower income for the entire industry, Professor Nugawela said. "As such it was vital for experts to study the problem and intervene to devise a solution so that plantation companies would not have to face a shortfall," he said.

The plantation industry is undoubtedly an integral part of the island's socio-economic make-up, and remains a vital contributor to the country's exports. With regard to the tea sector, the statistics are rosy. The tea industry has had another record year, production has increased and prices are high, all signs of a lucrative and profitable business. Regular fertilisation of all plantation crops is a sine qua non in the industry to ensure the quality and sustainability of soil and thereby ensure optimum harvests.

The non-availability of fertiliser when needed poses a serious threat to the entire industry and like a cancer needs to be addressed immediately.

Although the Fertiliser Secretariat has taken up the position that adequate fertiliser is available, the suppliers are not in a position to meet the demand due to inadequacy of stocks.

Those in the industry are apprehensive of the future and the manner in which most issues are addressed by the authorities. The need of the hour is a cohesive policy and proper intervention for the stability and future sustainability of the plantation industry.