News
World Bank-funded urea to support small-scale paddy growers
View(s):By Kapila Bandara
Sri Lanka took delivery this week of the first stock of urea fertiliser purchased with World Bank funding provided under an emergency facility.
The fertiliser, to help mitigate a dramatic increase in acute food insecurity, is to be distributed to smallholder farmers cultivating up to two hectares of paddy. Farmers will get 50kg bags at Rs 10,000 through Agrarian Service Centres (Govijana Seva) for the Maha paddy growing season after weeks of Government delays that have triggered angry protests by groups and individuals in some districts.
The United Nations World Food Programme’s Special Report – FAO/WFP Crop and Food Security Assessment Mission, estimated that paddy production is forecast to slump by 42% to 3 million tonnes in 2022. This is the lowest level since the 2017 drought-affected output.
More than 6.2 million Sri Lankans, or 28 % of the population, are moderately acute food insecure and 66,000 are deemed severely acute food insecure, despite denials by presidential adviser Dr Suren Batagoda, who was seen this week assuring there is no food crisis. He also claimed in September to a YouTube channel, there is no malnutrition, no lack of food, and that economically Sri Lanka is not weak. Dr Batagoda said there are concreted roads to every home and 100% electricity in every home, the “best of the best’’ health service.
A team from University of Peradeniya has estimated that 9.6m Sri Lankans are in poverty, compared with 3m when President Gotabaya Rajapaksas came into power.
About 150,000 MT of urea fertiliser is needed for paddy in the Maha season, the World Bank estimates. As of September, US$9 million (Rs 3.28 billion) has been disbursed for urea purchases.
Bags of fertiliser from the 12,500 MT shipment will be first sent to Batticaloa, Ampara, and Trincomalee.
Procurement data from the World Bank show that Singapore-headquartered commodity trader Valency International Pte Limited, was awarded a contract for the supply of urea for 2022-2023 Maha season. The 42-day contract is worth US$8.62 million (Rs 3.15 billion).
The trading company is headed by Mr P K Jain, its website shows.
Bids by another Singapore company, Liven Nutrients, and Fertiglobe Distribution based in Dubai, the United Arab Emirates, have been rejected.
Two other contracts for 95,000 MT have been successfully signed by the Ministry of Agriculture and a final contract for 25,000 MT is at an advance stage of being finalised, the World Bank said.
The World Bank awarded the urea contract under its ‘Inclusive Connectivity and Development Project’, which aims “to provide safe, efficient, and climate resilient connectivity and strengthen agricultural supply chains to empower project communities in selected districts’’.
About US$160m World Bank funds have been disbursed for essentials to meet urgent needs. This includes funds to the inefficient, graft-ridden state-run Litro Gas now headed by businessman Mr Muditha Peiris, to purchase cooking gas. Millions were without gas earlier this year, when distribution collapsed.
Nearly 4 million LP gas cylinders have been distributed with World Bank funds to urban and semi-urban households and businesses. World Bank funds allow for the purchase of 70,000 MT of LP gas to cover about 3.5 months’ supply, from July to October.
So far, US$51.6m has been disbursed for LP gas, World Bank data show.
The World Bank is also funding medicine and medical supplies (US$21.6m disbursed), school meals and tuition waivers, meals for schoolchildren and cash transfers for poor and vulnerable households (US$145 million). About 3 million received emergency cash transfers from May to July 2022.
In view of large-scale procurement corruption in the Government and private sector, the World Bank has said it established “robust controls and fiduciary oversight’’.
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