Excess fertilizer bought under subsidies to farmers at concessionary prices

(COLOMBO, LANKAPUVATH) – The government has taken steps for the Agrarian Development Centers to purchase the excess fertilizer imported by the state owned companies under the fertilizer subsidy program for paddy cultivation and sell it to the farmers at a concessionary price of Rs, 1000 for a 50 Kg bag.

Cabinet Spokesman, Minister Dr. Bandula Gunawardena said Chamal Rajapaksa, Minister of Mahaweli, Agriculture, Irrigation and Rural Development presented information on these measures to the Cabinet and the Cabinet of Ministers has paid attention to the matter.

Under the current fertilizer subsidy scheme, fertilizer is provided under subsidy for paddy cultivation up to 5 acres and the fertilizer required for more land should be purchased from the open market.

Under these circumstances, there is a shortage of fertilizer used for other crops in the open market. Especially due to COVID-19 Pandemic, the demand for fertilizer has increased due to the increase in the area under cultivation.

Accordingly, this proposal has been made in order to enable the farmers to purchase additional stocks of fertilizer without inconveniencing the government, the Cabinet Spokesman said.

Meanwhile, international competitive bids have been invited for the Procurement of fertilizer for Lanka Fertilizer Limited (Lak Pohora) and Colombo Commercial Fertilizer Limited for the requirement of fertilizer during the month of July 2020, a statement on cabinet decisions taken on July 01 said.

Cabinet of Ministers has given the consent to the Proposal submitted by the Minister of Mahaweli, Agriculture, Irrigation and Rural Development for awarding the procurement of fertilizer supply as mentioned below subject to the recommendation given by the standing procurement committee appointed by the Cabinet of Ministers with regard to those prices.

To procure 9,000 + 5% metric tons of Urea {(Graniula) from Agri Commodities and Finance FZE for a sum of US dollars 260.00 per metric ton,
To procure 6,000 + 5% metric tons of Triple Super Phosphate from Aries Fertilizers Group Pvt. Limited for a sum of US dollars 249.07 per metric ton.

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