Cabinet nod to increase prepayment limit of agricultural inputs

• Limit increases from $ 50,000 to $ 250,000 following industry lobbying
• Cabinet approves to import glyphosate for 6 months

The Cabinet Ministers at its meeting last week approved to increase the existing prepayment limit of $ 50,000 to $ 250,000 to import identified agricultural seeds, agrochemicals, and chemical fertilisers.

The move was a result of constant lobbying of the industry stakeholders. 

“The agricultural input importers have pointed out to the Government that it has become difficult to import essential agricultural inputs on time as it requires approvals by several institutions, and as a result of the time-consuming process, imports are delayed and have to incur additional costs,” the statement consisting weekly Cabinet Decisions issued by the Government Information Department noted. 

Given the country’s foreign exchange crisis, the importers face difficulties in opening letters of credit, as well as restrictions related to the prepayment system. 

Thus, it has hindered the growth of the industry, the statement added.

Separately, the Cabinet Ministers approved the importation of glyphosate quantities necessary for all agricultural purposes during the 2022/23 Maha Season.

“The period to import glyphosate is limited to six months,” Cabinet Co-Spokesman and Minister Bandula Gunawardena said at the post-Cabinet meeting media briefing.

 “The policy decision to ban the importation of glyphosate adversely impacted the entire agricultural industry, as well as the economy at large. The ramifications of it led to an overall massive drop in production and a surge in prices of all staple agricultural products,” a statement comprising weekly Cabinet Decisions noted. 

Against this backdrop, it added that permission was granted to import glyphosate for six months to allow farmers to carry out their agricultural activities more productively during the 2022/23 Maha Season.

Both proposals were submitted by President Ranil Wickremesinghe in his capacity as the Finance, Economic Stabilisation, and National Policies Minister was approved by the Cabinet Ministers on Thursday. 

Earlier this month, the Parliamentary Committee on Public Finance (COPF) also approved the Gazette with regulations under the Import and Export (Control) Act permitting the importation of glyphosate. (CdeS)