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Agri-officials and fertiliser suppliers agree on stable price for now
View(s):By Kapila Bandara
Fertiliser companies and agrochemical suppliers have agreed to abide by regulated prices days ahead of the Yala paddy planting season, in a coordinated policy response to mitigate risks, just as prices increased sharply in domestic and global markets due to the widening war in West Asia.
Following a meeting this week of all stakeholders with state agriculture authorities, suppliers settled for a cash-only Rs 9,650 for a 50 kilo bag of urea and a further lower offer at Rs 9,500. The price is comparable to levels in previous years.
But this could be temporary considering global fertiliser price volatility and the market’s links to energy.
In global markets, the price of urea has nearly doubled to above US$700 per tonne (about Rs 218,292) and will rise further if the war drags on. A global fertiliser shortfall is foreseen. Prices of important food commodities, wheat, rice, and vegetable oils, are also climbing. Shipping insurance premiums have surged.
Opportunist domestic retailers have jacked up prices of mineral fertilisers, well aware of supply-side jolts and high food prices on the demand side, while hoarding of nitrogen fertilisers such as urea was evident.
Minister K.D. Lalkantha, who leads a vast portfolio of interconnected subjects of agriculture, livestock, land, and irrigation, said farmer groups had raised concerns about exorbitant fertiliser prices after the March 13 Mahaweli water management committee meeting in Gannoruwa. The water release schedule for Yala was on the agenda. The National Fertiliser Secretariat updated on fertiliser needs and assured of adequate stocks in state and private sectors.
The minister acknowledged at the end of last week that he heard from farmer groups that fertiliser prices had been increased unjustly. He then called a meeting of all stakeholders on Tuesday, where regulating fertiliser price, fertiliser distribution, and regulating the price of agrochemicals were the main talking points.
He said retailers were being coerced into selling at high prices in mafia-like behaviour.
On Tuesday, fertiliser companies agreed to a price level at talks. Lakpohora agreed to Rs 9,000 per bag.
Farmers had raised the alarm that fertiliser price per 50-kilo bag had soared to Rs 13,000 to Rs 14,000 in some instances and called attention to hoarding.
Yala planting in Anuradhapura began on March 25. In 2025, Yala paddy production grew by double digits to 2.31 million metric tonnes.
Rajangana Ekabadda Govi Sanwidanaya head W.M. Ajith Priyantha Wasala said that fertiliser was being sold over the past two weeks at Rs 13,000-Rs 14,000 and that some retailers were hoarding.
But he said urea would be available in about two weeks at Govi Jana Seva centres at Rs 9,500 and triple super phosphate (TSP) for Rs 11,000. There is plenty of muriate of potash (MOP), he said.
K.G. Asoka Karunasena, Polonnaruwa Govi Jana Seva District Balamandala chair, said urea is being sold in Polonnaruwa at Rs 13,000 a bag in the black market.
While assuring there is no domestic fertiliser shortage, Agriculture Minister Lankantha also spoke of the possibility of buying fertiliser from China in May on a government-to-government basis.
The National People’s Power Government has shown awareness of higher fertiliser prices transmitting to food prices and weighing on food security. Higher prices also have a negative impact on producer margins.
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