Sri Lanka has sought a USD $55 million loan from India for the procurement of Urea, as the country faces its worst economic crisis with officials noting an impending severe food shortage.
Prime Minister Ranil Wickremesinghe had recently warned of a food crisis in the island due to the ongoing economic crisis.
The government said that the Indian government has agreed to provide the $55 million loan through the Export-Import Bank of India. The loan is being obtained for the procurement of urea for the 2022/23 ‘Maha’ harvest season.
"The Cabinet has approved a proposal by the Prime Minister to sign an agreement with India to purchase urea for agriculture,” an official said according to The Hindu.
The Hindu reports, that Wickremesinghe has said that within five to six months, the current agriculture shortages could be salvaged if swift action was taken to address the shortages faced by the farmers. The country is facing a near 50% crop loss due to a decision of President Gotabaya Rajapaksa last year to ban chemical fertiliser imports,
India had recently assured Sri Lanka an immediately supply 65,000 metric tonnes of urea to avoid any disruption in paddy cultivation, as it faces the worst economic crisis in its post-independence history.
The High Commissioner of Sri Lanka in New Delhi Milinda Moragoda had met with the Secretary of the Department of Fertilisers Rajesh Kumar Chaturvedi in New Delhi to discuss the supply of urea required for the current Yala cultivation season in Sri Lanka.
Moragoda thanked Chaturvedi for India’s decision to supply 65,000 MT of urea required for the current Yala cultivation season in Sri Lanka.
Read more at Colombogazette and The Hindu
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