Meghalaya goes the Sri Lanka way

 

Sri Lanka’s economic downfall is a case study for countries around the world and policy makers in Meghalaya in India's northeast realized belatedly how one of its policies was an exact replica of Sri Lanka’s.

 

 

According to economists, one of the policies that contributed to Sri Lanka’s economic downfall was the decision to shift from traditional farming methods to organic. This policy was implemented strictly from 2019 by Sri Lanka strongman Mahinda Rajapaksa with an import ban on agro chemicals.

 

 

After the diktat, there was a steep decline in production with farmers unable to get organic fertilizers or had little knowledge to deal with the new farming practice. The yield decreased drastically and tea and rice production were badly hit.

 

 

Similarly, Meghalaya banned subsidies on chemical fertilizers in 2014 under the then Congress-led government with Mukul Sangma as the Chief Minister on the advice of some over-enthusiastic bureaucrats.

 

 

The decision to ban subsidies on fertilizers was taken to "protect the environment" but in reality Meghalaya was in a hurry to capture the niche organic market.

 

 

Like Sri Lanka, there was an acute shortage of organic fertilizers in the state. Seven years later in 2021 the state government opened a bio-fertilizers production unit at the suburbs of the state capital. But by then damage was done and it was too little too late.

 

 

Faced with an acute shortage of organic fertilizers coupled with little knowledge on organic farming the farmers turned to chemical fertilizers albeit without the subsidy.

 

 

Black marketers thrived and farmers got the fertilizers at double and triple the regulated market rate. In turn, the cost of production increased and the policy to shift to organic farming went for a toss.

 

Recently, the state government reversed its policy and declared that it would lift the ban on fertilizers subsidy and would allow 50 percent subsidy to buy chemical fertilizers.

 

 

Now the state government is in talks with the Ministry of Chemicals and Fertilizers to release the state’s quota of chemical fertilizers since the ministry stopped the supply after the ban on subsidy.

 

 

Once this quota is released Meghalaya State Cooperative Marketing and Consumers' Federation Limited would handle the distribution of the subsidized fertilizers to the farmers.

 

 

Although agriculture is not self-sufficient in agricultural produce, this decision to lift the ban would provide solace to the farmers and in return  consumers would benefit from price reduction due to optimum production.