invest thinker wrote:banning of imported fertilizer, how is impact to AGST?? i think, it may be Negative.
If this is implemented, definitely it will badly hit AGST.
almost all fertilizers are imported.
ERP (Eppawala rock phosphate) is the only fertilizer which is not imported AFAIK.
AGST,Baurs,CIC agri buisness, Hayleys agriculture do the same buisness.
they import raw fertilizer
ex:
Urea,MOP,TSP,ammonium sulphate and blend them and produce NPK fertilizers with different ratios for different crops.
all these companies has their fully owned subsidies for agro chemicals (pesticides).
ex: AGST -> AgStar Cropcare (Private) Ltd
CIC - > CIC Crop Guard Pvt Ltd
so if this is implemented, not only fertilizer, pesticides also will not be imported.
to get some idea about the gravity of the impact we have to find out figures that what kind of revenue and profit is generated through these sections for those holding companies.
But i doubt whether this is practical.
this is just a one example.
in sri lanka we have more than 200,000 hectares cultivated tea.
when it is grown (after 5 years), this kind of blend will be used 27:4:13.
that means nitrogen (Urea) content is high. any crop which harvest is leaves (ex: betel) that N content is very important.
now this N content should be fed somehow (using compost)
two major problems, if they use 1MT of that chemical fertilizer, now they have to use 10MT of compost.
other problems is compost is not actually fertilizer. it is just organic parts, a plant can absorbs something is it should be in ions form. to absorb Nitrogen it should be NH4- or NO3-.
then the organic parts we added to soil should go with a transformation process to generate these ions. it is done by small warms and some micro lives live in the soil.
but if we have been using chemical fertilizer for a long time, now the density of these important organisms is very low. that means it takes long time to complete this transformation process.
i don't how tea estate owners will manage this.
sorry for the long answer, what i wanted to point out is, not only these companies, lot of other areas will face unpredictable issue. i have list of issues to mention, but this is enough to get a rough idea,
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