Agribusiness Council issues alert on impending food crisis | Sunday Observer

Agribusiness Council issues alert on impending food crisis

1 May, 2022

There may be a disruption to the food supply chain of the country in the future, the  National Agribusiness Council, the collective of entities making up the national food chain, states in a media release.

Excerpts of the release:

“After several meetings between the authorities and our member organisations, the council does not see any tangible solutions being offered to ensure the country’s food security in the coming year.

“The country has two main harvesting seasons: the Maha in March and April and the Yala in August and September. 

“While it is estimated that there is 30% of the inputs needed for the upcoming Yala season, which is grossly insufficient, there seem to be no solutions whatsoever for planting and growing the Maha harvest of 2023.

“According to our membership, it would take an average of six months to negotiate, place orders, make payments and open LCs, and ship in stocks to supply farmers in time for the season. With the current situation locally and globally this process may take much longer.

“While we share the frustration of the public with regards to shortages of fuel, gas, and electricity we would like to bring their attention to the matter of food which we feel would be a larger crisis. This would affect the livelihoods of 1.7 million small farmers we are all dependent on to grow our food.

“The country decided to modernise its agriculture sector in the eighties and one of the changes was to go for high-yielding hybrid seeds that need appropriate  inputs to support efficient results.

“Sadly, we have not developed the local ability to supply a majority of the needed seeds and due to this, we totally depend on imports. At the moment the seed stocks are fast running out and the available first-generation seeds are not adequate to meet the requirements of the country.

“However, there is some level of confidence that the cultivation of rice will be done by our farmers, as this is a staple needed by all of us, even though there will be a drastic drop in the yields and may not be adequate to meet the estimated national needs we feel with careful management and cutting down on waste due to bad post harvest handling the gap could be drastically reduced.

“There has been a very slow uptake of available potato seedlings and corn seeds as farmers are worried they will not have the other inputs to protect and grow their crops efficiently.

“The animal husbandry sector is suffering from very high costs of feed and low availability of feedstocks. Due to these circumstances, it is estimated that the costs of all animal-based proteins will rise to such a level that it would no longer be affordable to many families.

“Due to issues with the global supply chains, especially with the war in Europe, there is a Global shortage in supply of fertiliser, agriculture inputs, and animal feed. As other countries work to secure their food security and stockpile on behalf of their citizens they may not be in a position to assist Sri Lanka. “While there is little we can now do to affect the Yala season of 2022, we need a tangible and realistic plan to be implemented extremely fast to avoid an impending disaster and bring about a good crop for the next Maha season.

“This issue does not have a quick fix if the situation is allowed to deteriorate further, we may see large-scale food scarcity leading to widespread malnutrition and hunger. We ask the public to plead and urge the authorities to listen and  discuss this matter with people who are kowlegeable and experienced and bring in timely solutions to mitigate this impending crisis. The NAC and its members are committed to collaborate and do their best on behalf of the people of this country.

“Agriculture, food and beverage exports of Sri Lanka amounted to USD 3.7 billion last year, and it is estimated that over USD 800 million is needed to keep the agriculture inputs sector running effectively for a year. We see a possible short and medium-term solution with the input sector and agri-exporters working as a collective.

“The National Agribusiness Council could work with a Agri Exports collective which needs to be formed to apply for a facility in USD to meet the needs of the country.

“If this collaboration is possible, it will mean that the exporter and the input supplier could  meet their objectives while supporting the nation to avoid a serious food crisis and earning valuable foreign exchange,” the statement added.

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