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Government Reverses Organic Farming Policy Amidst Food Shortages

Sri Lanka Reverses Organic Farming Policy Amid Crisis

Sri Lanka’s government has lifted its ban on chemical fertilizers. This reversal comes amid a severe economic crisis and widespread food shortages. The ban, implemented in May 2021, aimed to make Sri Lanka fully adopt sustainable farming practices.

Rice yields, a staple in Sri Lanka, dropped by 40-50% nationwide. This decrease happened during the Maha growing season after the organic policy started. Sri Lanka had to import 300,000 metric tonnes of rice in just three months.

The new policies have hurt Sri Lankan farmers financially. Many can’t afford essential farming inputs, and some have stopped farming altogether. Food inflation is around 30% and expected to rise further.

Foreign reserves have shrunk to $1.8 billion. This makes it hard for the government to afford imports, including fertilizers. Experts call the food crisis a “man-made disaster”.

Increased hardships are expected in the coming months. Children and pregnant women are particularly at risk. The government is trying to address growing concerns about food availability and accessibility.

Impact of Fertilizer Ban on Sri Lankan Farmers

Sri Lanka’s 2021 chemical fertilizer ban has severely affected smallholder farmers. The ban aimed to reduce imported fertilizer dependence and promote organic farming. However, it resulted in widespread crop failures and decreased agricultural output.

Before the ban, 2 million Sri Lankan farmers relied on subsidized chemical fertilizers. The abrupt shift to organic farming left many struggling to adapt. Some farmers experienced a 50-60% decrease in harvests, devastating their incomes.

Many farmers now can’t afford essential farming inputs like pesticides and equipment. This has made it hard for them to maintain their farms and livelihoods.

Inability to Afford Farming Inputs

The fertilizer ban and economic crisis have made it tough for farmers to buy necessary inputs. Many have taken high-interest loans for pesticides and other essentials. This has worsened their financial situation.

Lack of affordable farm subsidies has left many unable to sustain their farms. This has led to widespread poverty and food insecurity in rural areas.

Farmers Abandoning Cultivation

Many smallholder farmers in Sri Lanka have decided to quit farming altogether. Reduced crop yields and increased input costs have made it impossible to sustain their farms.

Farmers are now seeking alternative income sources, often in urban areas. This trend has significantly reduced agricultural output across the country. It’s contributing to ongoing food shortages and economic instability.

Government Reverses Organic Farming Policy Amidst Food Shortages

Sri Lanka’s government has recognized the need to change its organic farming policy. President Gotabaya Rajapaksa admitted mistakes that require fixing to address food security issues. The goal is to boost domestic food production and ease growing protests.

The government has asked the World Bank for help to buy fertilizers. They plan to bring back subsidies for farmers. However, the details of these changes are still unclear.

Farmers remain doubtful about the government’s ability to keep its promises. This is due to the severe shortage of foreign currency in the country.

The chemical input ban has severely impacted crop yields. The last maha seasonal harvest dropped by 37% compared to the previous year. This is the lowest yield since 2003/04.

Food insecurity has affected about 6.3 million people in Sri Lanka as of September 2022. Food inflation has reached a staggering 94.9%.

To tackle the crisis, Sri Lanka secured a $55 million credit line from India Exim Bank. This money will be used to purchase fertilizers.

The government also had to pay $6.87 million for unsuitable organic fertilizer from China. This was due to their short-lived organic farming policy.

IFOAM – Organics International is organizing workshops to support Sri Lanka. These aim to help the country transition to organic agriculture more sustainably. The focus is on reforms that prioritize food security and domestic production.

Economic Crisis Exacerbates Agricultural Challenges

Sri Lanka’s economic crisis has worsened farmers’ struggles after the organic farming policy. Foreign reserves are low, and inflation is high. Shortages of fuel, food, and medicine have become common.

The country’s foreign debt skyrocketed from $11.3 billion in 2005 to $56.3 billion in 2020. In 2021, it reached 119% of the GDP. Sri Lanka defaulted on its debt in April 2022.

Rising fuel costs make it hard for farmers to grow and transport crops. Power cuts disrupt irrigation and milling. The government raised taxes to increase revenue.

Experts warn that food access and affordability will remain big issues. Vulnerable populations may face increased malnutrition. Many farmers are abandoning their livelihoods due to these challenges.

Globally, 193 million people faced food insecurity in 2021. In East Africa, 265 million live on less than $1.90 per day. About 40% of the population there has poor access to food.

A review of recent literature shows urgent need for solutions. These must address the complex issues facing Sri Lankan farmers and the broader population.

Sri Lanka's Shift to Organic Farming Leads to Significant Crop Declines

Sri Lanka’s Shift to Organic Farming Drops Crop Yields

Sri Lanka’s sudden switch to organic farming in 2021 caused major drops in crop yields. President Gotabaya Rajapaksa’s election promise led to a ban on synthetic fertilizers and pesticides. This forced 2 million farmers to adopt organic methods, resulting in a 20% fall in rice production.

The ban also hit tea crops hard, Sri Lanka’s main export. Within six months, domestic rice prices jumped by 50%. The country had to import $450 million worth of rice to make up for lost production.

The fertilizer ban’s impact was severe. Tea production losses alone cost the economy $425 million. This further strained Sri Lanka’s foreign exchange reserves and worsened the country’s economic crisis.

The government tried to help farmers with $200 million in direct compensation. They also gave $149 million in price subsidies to rice farmers. But these efforts weren’t enough to offset the negative effects of the sudden change.

The organic farming shift contributed to rising inflation and currency depreciation. It also increased poverty in the country. Critics say the government didn’t include agricultural experts in planning the change.

There was no gradual transition plan, which made things harder for farmers. The new policy not only hurt crop production but also threatened food security for Sri Lanka’s people.

Sri Lanka’s Abrupt Transition to Organic Farming

President Gotabaya Rajapaksa’s government banned synthetic fertilizer and pesticide imports in April 2021. This move was part of his organic agriculture pledge from the 2019 election campaign. The decision aimed to save foreign exchange and promote organic farming in Sri Lanka.

The policy was implemented without input from leading agricultural experts. Instead, it relied on representatives from the small organic sector and alternative agriculture advocates. This exclusion of agronomists led to widespread criticism of agricultural policy mismanagement.

President Gotabaya Rajapaksa’s Election Promise

During his 2019 campaign, President Rajapaksa promised a 10-year transition to organic farming. This pledge received mixed reactions. Sri Lanka had long relied on synthetic fertilizers and pesticides for crop yields.

Nationwide Ban on Synthetic Fertilizers and Pesticides

The government suddenly banned synthetic fertilizer and pesticide imports in April 2021. This abrupt change left farmers struggling to adapt to organic methods. It led to significant drops in crop yields and food shortages.

The decision to cut fertilizer subsidies made the situation worse for farmers. They faced many challenges during this rapid transition to organic farming.

Exclusion of Agricultural Experts in Policy Implementation

The government’s approach to implementing the organic farming policy faced heavy criticism. Leading agricultural experts and agronomists were left out of the decision-making process. Instead, the policy relied on input from the small organic sector and alternative agriculture advocates.

Many of these supporters were linked to the Viyathmaga civil society movement. This group had backed President Rajapaksa’s election campaign.

Economic and Agricultural Consequences

Sri Lanka’s sudden shift to organic farming caused major drops in crop yields. Rice production fell by 20% within six months of banning synthetic fertilizers. This forced the country to import $450 million worth of rice.

Domestic rice prices jumped by 50%. Food inflation hit 94% in August. As a result, 28% of the population faced food insecurity.

The tea industry, crucial for exports, also took a hit. Tea output decreased by 18% after the ban. This led to lower export earnings.

Other export crops like rubber, coconut, and spices suffered too. This affected household incomes and export revenues.

Farmers struggled due to insufficient organic fertilizer production. The government couldn’t produce enough to replace imported fertilizers. This made it hard for farmers to maintain crop yields.

Protests and economic instability forced the government to partially reverse the policy. They did this for key export crops by November 2021.

The failed policy led to reduced crop yields and tea export losses. It also increased food insecurity in Sri Lanka. The government had to compensate farmers and reverse the fertilizer policy.

Experts suggest a gradual shift to organic farming. This approach should include proper support and training for farmers. It would help minimize impacts on crop yields and food security.

Climate-Smart Agriculture Investment Plan Launched to Combat Climate Change

Sri Lanka Unveils Climate-Smart Agriculture Investment Plan

Sri Lanka has launched its first Climate-Smart Agriculture Investment Plan. This plan aims to strengthen farming against climate change impacts. It’s funded by the Green Climate Fund and led by the UN’s Food and Agriculture Organization.

The plan will give farmers sustainable practices and tools. These will help them deal with rising temperatures and extreme weather. The goal is to lessen the harmful effects of climate change on agriculture.

Sri Lanka is one of the top 10 countries at risk from climate change. This ranking comes from the Global Climate Risk Index. Without action, crop yields could drop by 10-12% in dry and intermediate zones.

The plan is a key step towards a stronger future for Sri Lankan farmers. It brings together experts from various fields to create effective strategies. These strategies will match Sri Lanka’s development goals.

The plan promotes ways to reduce climate change effects. It also teaches farmers how to adapt their methods. This knowledge will help them face the challenges of a changing climate.

FAO and Green Climate Fund Collaborate to Enhance Agricultural Resilience

The FAO and GCF are teaming up to boost climate-resilient food systems in Sri Lanka. This effort aims to improve agricultural resilience and support low-emission farming practices. It ensures food security for the growing population while promoting sustainable agriculture.

The FAO predicts food production must increase by 60% to feed 9 billion people by 2050. This initiative is a crucial step towards meeting that goal. It addresses both current and future food security challenges.

Innovative Investment Mechanisms to Bridge Farmers and Investors

The FAO-GCF partnership is creating new ways to connect farmers with investors. They’re attracting private sector funding and green investment initiatives. This helps farmers adopt climate-smart agriculture practices and access needed resources.

Similar projects have shown great success. For example, agroforestry systems on Mount Kilimanjaro increased farmers’ incomes by 25%. This was achieved through coffee cultivation, demonstrating the potential of these investments.

Promoting Youth Entrepreneurship in Agriculture

The collaboration focuses on getting youth involved in agriculture. They work with government bodies, private sector, and academia to create opportunities. This helps young people contribute to low-emission farming and climate-resilient food systems.

Youth involvement ensures long-term sustainability of Sri Lanka’s agricultural sector. It also boosts the nation’s economic growth and stability. This approach addresses both present and future agricultural needs.

Climate-Smart Agriculture Investment Plan Launched to Combat Climate Change

Sri Lanka has launched its Climate-Smart Agriculture Investment Plan to tackle climate change challenges. This initiative, backed by the Green Climate Fund and FAO, aims to strengthen the agricultural sector’s resilience.

Sri Lanka ranks among the top ten countries most vulnerable to extreme weather events. Without proper measures, dry and intermediate zones could face a 10-12% yield reduction in agriculture.

The plan involves various stakeholders, including government bodies, private sector, and academia. It aims to develop innovative investment mechanisms for Sri Lanka’s agricultural landscape. The goal is to connect farmers with investors for climate-smart interventions.

The global agrifood system currently emits one-third of all emissions. Food systems consume about 70% of fresh water resources. Global food demand is expected to rise to feed 9.7 billion people by 2050.

The launch workshop is the first of many planned consultations. Sri Lanka is taking proactive steps to equip its agricultural sector for adaptation and resilience. This approach will help ensure food security while reducing agriculture’s environmental impact.

Key Components of Sri Lanka’s Climate-Smart Agriculture Strategy

Sri Lanka’s Climate-Smart Agriculture Investment Plan aims to boost agricultural resilience and fight climate change. The $140 million plan promotes sustainable farming, ecosystem restoration, and environmental conservation. It focuses on low-emission agriculture, climate-resilient food systems, and attracting green investments.

The plan targets over 470,000 smallholder farmers in Sri Lanka’s dry zone. It covers 11 administrative districts and six provinces. The project is funded through a six-year Investment Project Financing Credit.

Funding sources include $125 million from IDA Transitional Credit and $15 million from other sources. The plan allocates $42 million for agriculture production and marketing. It also designates $92 million for water management and $6 million for project oversight.

Agroforestry is a key priority, integrating trees into farmland to boost ecosystem services. This practice enhances biodiversity and carbon sequestration. Agroforestry helps farmers adapt to climate change by providing shade and reducing soil erosion.

The plan supports agroforestry adoption through training and financial incentives. A Project Management Unit within the Ministry oversees implementation. A National Project Steering Committee provides strategic guidance and coordination.

Monitoring and evaluation are crucial to assess the plan’s outcomes. These measures ensure effective implementation of the action plan.

FAO and Norway Collaborate to Enhance Resilience in Fisheries Sector

FAO and Norway Collaborate to Enhance Fisheries Resilience

The FAO and Norad are teaming up to strengthen Sri Lanka’s fisheries and aquaculture sector. This international cooperation aims to boost sustainable fishing and support the country’s blue economy. The goal is to ensure food security and promote responsible practices.

Fish is crucial for Sri Lanka’s protein needs. Over half of the nation’s animal protein comes from fish consumption. However, the industry faces many challenges.

Rising fuel prices and production costs are major issues. Fish loss along the value chain also impacts product affordability. These problems particularly affect low-income groups.

The FAO-Norway project will target three main areas. First, they’ll work to stop illegal and unreported fishing. Second, they’ll increase climate change resilience. Third, they’ll reduce food waste in the fisheries chain.

The project will provide technical support to various groups. These include policymakers, management experts, and industry professionals. Fishers, fish farmers, and fish workers will also receive help.

The aim is to boost Sri Lanka’s fisheries sector through responsible resource use. Marine conservation will play a key role in this effort. This will contribute to the country’s overall socio-economic growth.

Sri Lanka’s Fisheries Sector Faces Challenges

Sri Lanka’s fisheries industry supports 2.5 million coastal residents. It’s struggling amid the country’s economic crisis. The sector provides half of Sri Lankans’ animal protein but faces rising fuel prices and costs.

Economic Crisis Impacts Fisheries Industry

Fuel price hikes have hit the fisheries sector hard. Higher costs make it tough for fishers to earn a living. As a result, fish prices have increased, affecting low-income groups.

Rising Fuel Prices and Production Costs Affect Affordability

Fish is a key protein source for Sri Lankans. But soaring costs have made it less affordable for many households. This raises concerns about people’s nutrition, especially in lower-income groups.

Fish Loss and Waste Along the Value Chain

Sri Lanka’s fisheries face fish loss and waste issues. Poor cold storage and transport lead to post-harvest losses. This reduces fish supply in the market.

Addressing these problems is vital for food security. It’s also crucial for maintaining the sector’s long-term sustainability.

FAO and Norway Collaborate to Enhance Resilience in Fisheries Sector

FAO and Norway are teaming up to boost Sri Lanka’s fisheries sector. They’re focusing on responsible use of resources and building capacity. Their project aims to improve fisheries governance, fight illegal fishing, and adapt to climate change.

FAO delivered two climate-resilient fishing boats to the Ministry of Fisheries. These boats, SL20 and SL23, cost about LKR 9 million. The project also introduced 30 modified fish display stalls across Sri Lanka.

Developing Capacities to Combat Illegal, Unreported, and Unregulated Fishing

The project aims to fight illegal, unreported, and unregulated (IUU) fishing. It’s implementing Port State Measures and improving marine resources management. These efforts protect small-scale fishers’ livelihoods and ensure food security in Sri Lanka.

Increasing Resilience to Climate Change

Sri Lanka’s fisheries sector is vulnerable to climate change impacts. The project builds resilience through training and new technologies. Climate-resilient fishing boats are helping the sector adapt to changing conditions.

Reducing Food Loss and Waste in the Fisheries Value Chain

A NARA study found poor maintenance practices among Sri Lankan fish retailers. This leads to significant post-harvest losses. FAO’s new fish display stalls promote better handling and storage practices.

These stalls aim to reduce food loss along the fisheries value chain. The FAO-Norway partnership shows commitment to sustainable fisheries development in Sri Lanka. It addresses IUU fishing, climate change, and post-harvest losses.

This project aims to improve fishing communities’ well-being. It also ensures responsible use of fisheries resources for future generations.

Introducing Technology Upgrades for Sustainability

The FAO is boosting Sri Lanka’s fisheries with new tech upgrades. These aim to tackle issues like post-harvest losses and high fuel use. Advanced cooling, fuel-efficient tech, and AI apps will improve the industry’s sustainability.

Advanced Cooling Systems to Reduce Post-Harvest Losses

New cooling systems on multi-day fishing boats help cut post-harvest losses. These systems keep fish fresh and high-quality. This increases market value and reduces waste.

The upgrade benefits fishermen financially and supports food security. More of the catch now reaches consumers in better condition.

Fuel-Efficient Bulbous Bow Technology to Cut Fuel Consumption

The FAO has added fuel-efficient bulbous bow tech to fishing boats. This design change cuts drag and boosts efficiency. Boats with this tech can save up to 13% on fuel.

Lower fuel use means less cost for fishermen. It also reduces harmful emissions. This tech makes fishing more eco-friendly and cost-effective.

AI-Powered Mobile App for Real-Time Fish Quality Assessment

An AI-powered app now helps assess fish quality in real-time. It quickly checks catch quality against Yellowfin Tuna export standards. The app gives instant feedback on freshness, size, and overall condition.

This tool helps fishers and processors make smart choices. It boosts operations and meets global market needs. The app improves competitiveness and promotes sustainable fishing practices.

Discussions with IMF Focus on Taxation and Revenue Goals

Sri Lanka IMF Talks Focus on Tax and Revenue Targets

The Sri Lanka economy and IMF are discussing fiscal policies and tax reforms. These talks aim to tackle revenue goals and economic challenges. They’re part of the ongoing IMF agreement.

Key Sri Lankan officials met in Washington recently. The Central Bank Governor, Treasury Secretary, and President’s Economic Advisor attended. They focused on tax parts of the IMF deal, especially VAT and revenue targets.

The Cabinet Spokesperson said the government wants to follow IMF recommendations. This is vital for successful economic reforms in Sri Lanka.

Officials will update the public in an upcoming media briefing. The world and Sri Lankans eagerly await the results. These talks could greatly impact the country’s economic future.

IMF and Sri Lanka Engage in Discussions on Fiscal Policies

The IMF and Sri Lanka are discussing fiscal policies. They aim to align Sri Lanka’s taxation and revenue targets with IMF recommendations. These talks address Sri Lanka’s economic challenges, including tourism decline and foreign reserve depletion.

Cabinet Spokesperson Highlights Aim to Align with IMF Recommendations

Cabinet Spokesperson Vijitha Herath stressed aligning fiscal policies with IMF recommendations. No final decisions have been made yet. The government seeks a path for economic stability and growth.

Meetings in Washington Include Key Sri Lankan Officials

A Sri Lankan delegation is in Washington, DC. The CBSL Governor and Treasury Secretary are part of this group. They’re discussing the IMF program’s continuation under the new Government.

These key officials are negotiating expected tax benefits and revenue measures. These elements will be crucial to the IMF agreement.

Tax Components of IMF Agreement Under Review

The tax components of the IMF agreement are under review. The government wants to provide tax benefits and offset losses. They’re also addressing leakages in the Customs and Excise Department.

Recovering defaulted taxes is on the agenda. Leveraging GDP growth for additional revenue is also being considered.

Discussions with IMF Focus on Taxation and Revenue Goals

Sri Lanka is in talks with the International Monetary Fund (IMF) about taxation and revenue targets. The focus is on boosting revenue collection while providing tax benefits to support growth. These measures aim to ease the burden on citizens.

Value Added Tax (VAT) and Revenue Targets Central to Talks

The Value Added Tax (VAT) system is a key topic in the discussions. The government may offer VAT exemptions for essential items to help citizens. However, this must be balanced with meeting revenue targets.

Tax avoidance practices cost countries between 100-240 billion USD annually. Sri Lanka aims to optimize its VAT structure to minimize losses while offering targeted relief.

Sri Lanka Seeks to Provide Tax Benefits and Offset Losses

Sri Lanka is considering raising the Pay-As-You-Earn (PAYE) Tax threshold. This would provide tax benefits to more taxpayers. The government knows it needs to make up for potential revenue losses.

Developing countries like Sri Lanka rely heavily on corporate income tax. They face a bigger burden from Base Erosion and Profit Shifting (BEPS) practices. Sri Lanka is part of the OECD/G20 Inclusive Framework to address tax avoidance.

Proposed Measures Include Addressing Leakages in Customs and Excise Department

One plan to offset revenue losses is to fix leaks in the Customs and Excise Department. Sri Lanka aims to boost revenue by strengthening enforcement and closing loopholes. Regional tax organizations like SAARC help countries implement effective tax policies.

Recovering Defaulted Taxes and Leveraging GDP Growth for Additional Revenue

Sri Lanka is looking to recover defaulted taxes. They plan to use stricter enforcement and offer incentives for voluntary compliance. This could bring defaulters back into the tax net and increase revenue.

The government also plans to use current GDP growth to generate more tax revenue. As the economy grows, the tax base should widen. This could increase revenue without new taxes.

Reforms and Collaboration: The Path Forward for Sri Lanka and IMF

Sri Lanka faces economic challenges that require collaboration with the International Monetary Fund (IMF). The IMF approved a $2.9 billion Extended Fund Facility arrangement for Sri Lanka. This 48-month plan aims to address balance of payments issues and implement structural changes.

Sri Lanka needs a tax policy unit in the Finance Ministry. This unit would advise on tax policies and oversee tax governance. It would focus on direct and indirect taxes, and analyze cost-benefits of new taxes.

The country must strive for a more balanced tax structure. Over 80% of government tax revenue comes from indirect taxes. Multiple corporate tax rates for different industries could promote specific areas.

Sri Lanka must address its debt sustainability. The country aims to negotiate new debt repayment schedules with creditors. Support from China, India, and Japan will aid economic recovery aligned with the IMF programme.

The government must ensure efficient public services and secure food, medicine, and fuel. Two-thirds of Sri Lanka’s energy supply comes from fuel imports. This leaves the nation vulnerable to global energy price shocks.

The IMF calls for stronger social safety nets during fiscal reforms. The government needs to balance public spending, tax revenues, and sustainable foreign borrowing.

By implementing these reforms, Sri Lanka can create a more stable future. This path requires commitment to fiscal consolidation and robust tax policies. With international support, Sri Lanka can overcome its challenges and emerge stronger.