ECONOMYNEXT – Sri Lanka’s Ministry of Trade said it plans to give interest subsidies to egg famers who the industry says aere now crippled by price controls imposed by the Consumer Affairs Authority.
“The Minister advised the officials to grant loans for the egg producers under a minimum interest rate to reduce production cost,” the ministry statement said.
No details were given on how to the interest subsidy will be implemented.
Sri Lanka’s egg farms are in crisis after the Consumer Affairs Authority, which some critics say is a threat to food security in the country, imposed price controls on eggs.
A Sri Lanka poultry farmer grouping welcome the interest subsidy plan move.
The Trade Ministry statement also outlined, “The minister asked the officials to look into the possibility of granting a loan for the egg producers to increase the supply of eggs to the market.”
“In the coming days there will be a great demand for eggs as a means of protein for children and this interest rate deduction will be utilised,” said Chairman of the All Island Poultry Association Ajith Gunasekera said.
Following the collapse of the rupee from 200 to 360 to the US dollar, working capital needs of farmers have gone up.
“Prior to the crisis it would take 800,000 rupees for breeding and now it takes 3.5 million, so interest rate deductions will help us fill in the gaps for investment.”
In Sri Lanka eggs are under price control and some farmers have killed layers for meat, industry officials said. In contrast chicken meat prices are now falling after prices went up giving incentives for broiler chicken farmers to expand production. (Colombo/Dec15/2022)