An official claimed on June 7 that Sri Lanka has requested for $55 million loan through India to purchase urea in the middle of its worst economic crisis, which is facing a serious food shortage.
Due to the continued economic turmoil, PMRanil Wickremesinghe recently warned of a food catastrophe in the island nation. “The Prime Minister’s proposal to negotiate an agreement with The government to acquire urea for agriculture has been accepted by the Cabinet,” an official said.
Loan to resolve agricultural shortages
The Indian government agreed to offer a $55 million loan through Export-Import Bank of India, according to the government. The loan will be used to purchase urea for the ‘Maha’ harvest season in 2022/23.
Mr. Wickremesinghe has stated that the current agricultural shortages could be resolved in five to six months if immediate effort is made to address the farmers’ shortages.
Due to President Gotabaya Rajapaksa’s decision last year to prohibit chemical fertiliser imports, the government is experiencing a near 50% crop loss.
The decision sparked massive farmer protests, which the administration dismissed, claiming that it was the government’s intention to transition to green agriculture using organic fertiliser. Sri Lanka is experiencing its biggest economic crisis since gaining independence from the United Kingdom in 1945.
The consequences faced due to economic crisis
Food, medicines, cooking gas as well as other fuel, toilet paper, and even matches are in short supply as a result of the economic crisis, with Sri Lankans forced to queue for hours outside businesses to buy gasoline and cooking gas for months.
The move sparked massive farmer protests, which the administration dismissed, claiming that it was the government’s intention to shift to green agriculture using organic fertilisers. Sri Lanka is experiencing its biggest economic crisis since gaining independence from the United Kingdom in 1945.
Sri Lanka has already been having trouble paying for vital imports such as food, medications, fuel, and LPG for months due to a dollar shortage.
India to support Sri Lanka
As the island’s crisis worsened this year, India provided $3.5 billion in critical support in the form of lines of credit for import, debt deferments, & currency swaps. “Those aspects are being worked out,” an Indian officials said of whether the fertiliser would be delivered as type of current credit lines or through a new one.
As per Secretary to the Ministry of Agriculture, M.B. Rohana Pushpakumara, Sri Lanka is now counting on the arrival of a 65,000 tonne fertiliser consignment from India worth about $25 million. “We’ve asked for nitrogen fertiliser, which is crucial for present paddy & maize growing season.”
READ MORE-India export Fertilizer to SriLanka to cope with Food shortages
