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| Sunday, 19 September 2004 |
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Govt to phase out chemical fertilizer use by Gamini Warushamana The Ministry of Agriculture expects to reduce the use of chemical fertilizer by 25% within the next year. This decision has been taken to reduce the subsidy burden on the government that lead to a large budget deficit. The ministry has taken a very effective decision in this regard and Colombo Commercial Company (CCC), one of the State companies marketing fertilizer and agro inputs has been assigned to market organic fertilizers only. The other two State companies, Lak Pohora and Janatha Pohora companies will be in the chemical fertilizer business hereafter, Ministry sources said. The CCC will purchase organic fertilizer from private sector producers that produce to match with company- recommended quality standards. The Ministry has planned to increase the organic fertilizer production at domestic level and will provide the technology and incentives. The Ministry will start a national campaign today (Spetember 19) to encourage farmers to use hay as fertilizer in the paddy fields. Agriculture minister Anura Dissanayake, Minister of Housing and Construction Industry Mrs. Ferial Ashraff and other parlimentarians of the Ampara district and farmers of the area will participate in the Sharamadana campaign of laying hay in 500 acres today. The attention of the ministry is also focused on limiting the fertilizer subsidy to farmers. The ministry has revealed that 40% of the urea imported is used in the plantations. The Ministry says that all plantations tea, coconuts and rubber are profitable and the products are selling at higher prices and therefore they can bear the fertilizer cost. The subsidies are needed for low productive agriculture and poor farmers. If these objectives can be achieved the fertilizer subsidy can be reduced by 65% ministry sources said. The government grants Rs.15000 subsidy per Metric ton of urea and the total cost per year is around Rs.4500 million. |
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