Sanity prevails on agrochemicals ban

The inevitable has finally happened with Finance Minister Basil Rajapaksa’s decision to reverse the blanket ban on imports of chemical fertiliser into the country.

President Gotabaya Rajapaksa’s lightning decision to end the import of chemical fertilisers earlier this year has already had a crippling effect on the agriculture industry and export crops like tea and rubber. The President claimed the decision was based on his pledges to usher in a “green socio-economy in Sri Lanka” and he doubled down on the decision in April 2021, when he insisted that the ban on agrochemicals would not be reversed under any circumstances. There was also speculation that the overnight ban came into effect because the cash-strapped Treasury can no longer afford to import fertiliser in huge volumes. Sri Lanka spends $ 400 million on chemical fertiliser imports annually, the President claimed.

Agricultural experts, researchers and academics warned that the ban would slash crop yields by as much as 50%, the tea industry would likely face complete collapse and the Government would be threatening Sri Lanka’s food security during a global pandemic with its short-sighted decision. Within weeks, farmers all over the country were up in arms, abandoning their fields and predicting dire vegetable and rice shortages a few months down the road.

With Basil Rajapaksa’s re-entry to Parliament and the take-over of the Finance Portfolio, hope was rekindled that the politically-savvy SLPP strategist would convince his President brother to reverse the fertiliser ban and deliver relief to the country’s farmers, a key electoral constituency for the ruling party. As the SLPP election maestro, no one better understands the impact of antagonising the farming community on the party’s base than Basil Rajapaksa. But still, the President’s Office denied the news reports, insisting that the policy to ban agrochemicals would remain in effect.

Less than a month later, the Finance Minister, and sanity, have prevailed. On 2 August, the Imports and Exports Department issued Operating Instructions to all commercial banks, informing that the import of chelated minerals and micronutrients which was previously banned have been brought under an Import Control Licence (ICL) by a Gazette notification issued on 31 July. Under the new instructions commercial banks can now proceed with import payments for chemical fertilisers provided the importer possesses a valid ICL.

The massive U-turn will bring further derision upon the SLPP Government from its critics, but it will have the tea industry breathing a huge sigh of relief. There is virtually no doubt that a government desperate for foreign exchange will ensure tea manufacturers obtain the necessary permits to import agrochemicals vital to optimising yields.

The news is less optimistic for ordinary farmers, however. The issuance of the import permits is likely to be tightly controlled. If the past is any indication, permits will be issued based on political patronage systems, ensuring that powerful companies and individuals will secure access to the licences, while the ordinary farmer will struggle to secure the fertiliser he needs to ensure maximum crop production.

In a bid to save face, Government officials are insisting that the decision to reverse the ban comes in the wake of widespread concerns about its impact on the viability of the agriculture sector. The Government will continue to “relentlessly” promote the full use of organic fertiliser in the country with a host of policy initiatives, officials maintain.

But every expert has maintained that this was precisely the strategy that should have been adopted in the first place. No country can switch from agrochemicals to organic farming overnight, without risking food security and the collapse of livelihoods in the agricultural sector. Most experts recommended a phased-out ban of chemical fertiliser, providing the industry sufficient time and space to make the transition.

While the licencing system for imports of chemical fertilisers might bring its own share of problems, the reversal on a short-sighted and high risk policy is a welcome move, and perhaps an indication that within the regime, cooler heads with greater political maturity have begun to prevail.