state ministry of production and supply of fertilizer and

Ministry of Agriculture

State Ministry of Production and Supply of

Fertilizer and Regulation of Chemical

Fertilizer and Insecticide Use

Progress Report (As At 30.09.2020)

No.80/5, Second Floor, Govijana Mandiraya,

Rajamalwatta Lane, Battaramulla

i

Content

1. Chapter One ........................................................................................................................... 1

Introduction - State Ministry of Production and Supply of Fertilizer and Regulation 1.1

of Chemical Fertilizer and Insecticide Use ................................................................. 1

Functions ..................................................................................................................... 1 1.2

Special Priorities ......................................................................................................... 1 1.3

Sustainable Development Goals and Objectives to be Achieved ............................... 1 1.4

Institutions Coming Under the Purview of the Ministry ............................................. 2 1.5

Legal Framework ........................................................................................................ 2 1.6

Organizational Chart of the State Ministry ................................................................. 3 1.7

2. Chapter Two........................................................................................................................... 4

Development Programmes and Financial Targets of the State Ministry for the Year 2.1

2021 in line with the Implementation of the “Vision of Prosperity” National Policy.

..................................................................................................................................... 4

Provisions Received from the Department of National Budget in the Year 2020 and 2.2

Progress ....................................................................................................................... 5

Procurement Activities - Progress as per the Procurement Plan ................................. 6 2.3

The Way of Internal Audit was conducted and the Progress obtained- ...................... 6 2.4

3. Chapter Three......................................................................................................................... 7

Human Resource Development and Capacity Development ...................................... 7 3.1

Specific Reasons for achieving / not achieving Human Resource Development 3.2

Goals ........................................................................................................................... 7

4. Chapter Four .......................................................................................................................... 7

Physical Progress of Development Programmes and Physical Progress of Foreign 4.1

Aided Projects ............................................................................................................. 7

Summary Report on How to Achieve Future Targets ................................................. 7 4.2

5. National Fertilizer Secretariat ................................................................................................ 8

Introduction ................................................................................................................. 8 5.1

Functions ..................................................................................................................... 8 5.2

Sustainable Development Goals and Objectives to be Achieved ............................... 8 5.3

Organizational Chart of the Institution ....................................................................... 9 5.4

Development Programmes and Financial Targets for the Year 2021 in line with the 5.5

Implementation of the “Vision of Prosperity” National Policy .................................. 9

Allocations Received from the Department of National Budget and Progress ......... 10 5.6

Financial and Physical Progress as per the 1st Vote On Account.............................. 11 5.7

ii

Financial and Physical Progress as per the 2nd

Vote On Account ............................. 12 5.8

Financial and Physical Progress as per the 3rd

Vote On Account ............................. 12 5.9

The 4th

Vote On Account is reported under the State Ministry................................. 13 5.10

Procurement Activities - Procurement Plan and Progress ........................................ 13 5.11

The Way of Internal Audit was conducted and the Progress obtained ..................... 14 5.12

Human Resource Development and Capacity Development .................................... 14 5.13


Goals ......................................................................................................................... 14

Physical Progress of Foreign Aided Projects ............................................................ 14 5.15

Challenges ................................................................................................................. 14 5.16

Summary Report on How to Achieve Future Targets ............................................... 15 5.17

6. Lanka Fertilizer Company Ltd ............................................................................................. 15

Institution as per the Act ........................................................................................... 15 6.1

Vision of the Lanka Fertilizer Company Ltd ............................................................ 15 6.2

Mission of the Lanka Fertilizer Company Ltd .......................................................... 15 6.3

Objectives ................................................................................................................. 15 6.4

Functions ................................................................................................................... 16 6.5

Sustainable Development Goals and Objectives to be Achieved ............................. 16 6.6

Financial and Physical Progress of the Programmes as at 30.09.2020 ..................... 17 6.7

Procurement Plan and Progress ................................................................................. 18 6.8

The Way of Internal Audit was conducted and the Progress obtained ..................... 18 6.9

Human Resource Development ................................................................................. 19 6.10

Foreign Training ........................................................................................................ 19 6.11


Goals ......................................................................................................................... 19

Issues Existing ........................................................................................................... 19 6.13

Upcoming Suggestions .............................................................................................. 20 6.14

7. Colombo Commercial Fertilizer Ltd ................................................................................... 20

Vision ........................................................................................................................ 20 7.1

Mission ...................................................................................................................... 20 7.2

Functions ................................................................................................................... 20 7.3

Objectives .................................................................................................................. 21 7.4

Sustainability development goals and indicators to be achieved by the institution .. 21 7.5

iii

Progress of the Year 2020 and Upcoming Development Programmes for the Year 7.6

2021........................................................................................................................... 21

Procurement Plan and Progress ................................................................................. 22 7.7

The Way of Internal Audit was conducted and the Progress obtained (As at 7.8

30.09.2020) ............................................................................................................... 23

Human Resource Development and Capacity Development (Progress as per the 7.9

Human Resource Plan) ............................................................................................. 23

Foreign Trainings ...................................................................................................... 23 7.10


Goals ......................................................................................................................... 23

Physical Progress of Development Programmes and Physical Progress of Foreign 7.12

Aided Projects ........................................................................................................... 24

If the Expected Outcomes could not be achieved, Reasons and Obstacles for same 7.13

................................................................................................................................... 24

Summary Report on How to Achieve Future Targets ............................................... 24 7.14

8. Sri Lanka Freedom from Hunger Campaign Board (National Food Promotion Board) ..... 24

8.1 Introduction ............................................................................................................... 24

8.2 Vision ........................................................................................................................ 24

8.3 Mission ...................................................................................................................... 24

8.4 Objectives .................................................................................................................. 25

8.5 Sustainable Development Goals and Targets to be Achieved by the Institution ...... 25

8.6 Organizational Chart ................................................................................................. 26

8.7 Financial Targets of the Development Programmes for the year 2021 in line with the

Implementation of the “Vista of Prosperity” National Policy .................................. 26

8.8 Allocations Received from the Department of National Budget and Progress ......... 27

8.9 4th

Vote On Account, Progress as at 30.09.2020 ....................................................... 28

8.10 Procurement Activities – Procurement Plan and Progress ........................................ 28

8.11 The Way of Internal Audit was conducted and the Progress obtained ..................... 29

8.12 Financial Target and progress included in Development Programmes up to

30.09.2020................................................................................................................. 30

8.13 Issues and Challenges................................................................................................ 32

8.14 The Way of Achieving Future Goals ........................................................................ 32

1

State Ministry of Production and Supply of Fertilizer and

Regulation of Chemical Fertilizer and Insecticide Use

1 Chapter One

Introduction - State Ministry of Production and Supply of Fertilizer 1.1

and Regulation of Chemical Fertilizer and Insecticide Use

The State Ministry of Production and Supply of Fertilizer and Regulation of Chemical

Fertilizer and Insecticide Use was established by the Gazette Extraordinary of the Democratic

Socialist Republic of Sri Lanka No. 2187/27 dated 09th

August 2020. Later it was revised by

the Gazette Extraordinary No. 2196/27 dated 06th

October 2020.

Functions 1.2

Key functions of this State Ministry are assisting in the formulation of policies in relation to

the subject of production and supply of fertilizer and regulation of chemical fertilizer and

insecticide use to "encourage use of quality fertilizer" under the direction and guidance of the

Minister of Agriculture in conformity with the prescribed Laws, Acts and Ordinances and

implementing, projects under the National Budget, State Investment and National

Development Programme, and implementing, monitoring and evaluating subjects and

functions of the below-mentioned Departments, State Corporations and Statutory

Organizations.

Special Priorities 1.3

Formulating methodologies for the timely distribution of technological crop systems, quality

seeds, plants and fertilizer of standardized quality for major crops including paddy and grain

varieties, pepper, cloves and cocoa as well as vegetable, fruit and home garden crops

Encouraging local production of organic fertilizer using local materials to international

standards and production of other high quality fertilizers within the country.

Sustainable Development Goals and Objectives to be Achieved 1.4

Goal 2 - End hunger, achieve food security and improved nutrition and promote

sustainable agriculture

Goal 1- End poverty in all its forms everywhere

2

Institutions Coming Under the Purview of the Ministry 1.5

Institutions relevant to the following fields are assigned under this Ministry.

National Fertilizer Secretariat

Ceylon Fertilizer Company Ltd.

Colombo Commercial Fertilizer Company

National Hunger Eradication Campaign Board of Sri Lanka (National Food

Promotion Board)

Legal Framework 1.6

The following ordinances are to be implemented under the Ministry.

Fertilizer Regulation Act No. 68 of 1988

Pesticides Control Act No. 33 of 1980

Sri Lanka National Hunger Eradication Act No. 15 of 1973

Plant Protection Act No. 33 of 1999

3

Organizational Chart of the State Ministry 1.7

4

2 Chapter Two

Development Programmes and Financial Targets of the State 2.1

Ministry for the Year 2021 in line with the Implementation of the

“Vistas of Prosperity” National Policy.

S.

No. Targeted Development Programme

Financial

Target

Rs. Mn

Sustainable

Development Goal

Expected to be

Achieved

01 Computer networking of the

Management System of the National

Fertilizer Secretariat with the

involvement of all other stakeholders

engaged in the distribution of fertilizers

(in real time online system).

50.00

1. End hunger, achieve

food security and

improved nutrition

and promote

sustainable

agriculture

2. End poverty in all its

forms everywhere

02 Modernization of the District Office

system of the National Fertilizer

Secretariat and establishment of an

appropriate communication system

50.00

03 Acquisition and upgrading of the

laboratory currently owned by

Lakpohora Company to the Ministry for

testing the nutrients (N, P, K) contained

in fertilizers on behalf of the National

Fertilizer Secretariat and recruitment of

05 officers for the technical staff.

19.00

04 Preparation of an easy-to-use field card

for instant testing of nutrients (N, P, K)

in chemical fertilizers by the Institute of

Nanotechnology, Sri Lanka

10.00

05 Introduction of a National Fertilizer

Policy 4.00

5

06 Introduction of fertilizer production and

use protocol 3.00

07 Inclusion of necessary amendments to

the Fertilizer Regulation Act No. 68 of

1988

2.00

08 Inclusion of necessary amendments to

the Pest Control Act No. 33 of 1980 2.00

Total 140.00

Provisions Received from the Department of National Budget in the 2.2

Year 2020 and Progress

S.

No.

Targeted

Development

Programme

Financial Target

Rs.

Sustainable Development Goal

Expected to be Achieved

1 426-02-03-1504

(Recurrent

Expenditure, 4th

Vote On Account)

13,500,000,000 End hunger, achieve food

security and improved nutrition

and promote sustainable

agriculture

End poverty in all its forms

everywhere

2 Capital Expenditure,

4th

Vote On Account

Not provided

6

4th

Vote On Account

S.

No.

Project /

Programme

Allocation

Rs.

Sustainable Development Goal Expected to be

Achieved

Expenditure

Rs. % Physical Progress %

426/2

/3/15

04

Recurrent 13,500,000,000 10,501,599,834 78 Distribution of

193,322 Urea, TSP,

MOP fertilizers for

898,641 paddy

farmers for the

Maha season

2019/2020.

Importation of

fertilizer 377,000

Mt for other crops.

100

Procurement Activities - Progress as per the Procurement Plan 2.3

Procurement Type Allocation

Rs.

Source of

Funding Expenditure Progress

Renovation and improvement

of capital goods

600,000 Government of

Sri Lanka

No

Tenders

are

planned. Acquisition of capital goods 500,000 Government of

Sri Lanka

No

The Way of Internal Audit was conducted and the Progress 2.4

obtained -

The internal audit is scheduled to take place at the end of the year.

7

3 Chapter Three

Human Resource Development and Capacity Development (Progress 3.1

as per the Human Resource Plan)

No local training / foreign training was received during the relevant period of this year.

Specific Reasons for achieving / not achieving Human Resource 3.2

Development Goals

As the new ministry, it is expected to carry out local and foreign training activities as

required, in the upcoming year.

4 Chapter Four

Physical Progress of Development Programmes and Physical 4.1

Progress of Foreign Aided Projects

No foreign aided projects have been received on behalf of the Ministry.

Summary Report on How to Achieve Future Targets 4.2

The primary objective of this Ministry is to formulate policies to encourage the use of quality

fertilizers.

Also, among the special objectives of the Ministry, it includes preparation of methods for

timely distribution of technical cultivation methods, advanced seeds and plants as well as

quality fertilizers, for paddy, cereals and minor export crops (cloves, pepper and cocoa) as

well as vegetables, fruits and home gardens and Production of organic fertilizers in

accordance with international standards and encouraging production of other high quality

fertilizers locally

In order to achieve the above objectives, the necessary programme will be prioritized and

work will be implemented under the Centralized Planning Framework 2021-2023.

8

Chapter Five

Institutions Under the Purview of the Ministry and Progress of

Those Institutions

5 National Fertilizer Secretariat

Introduction 5.1

The National Fertilizer Secretariat has been established under Fertilizer Regularization Act

No 68 of 1988. Under this, a network of district offices is being implemented covering all 25

districts of the island.

Functions 5.2

Implementation of the Fertilizer Regulation Act No. 68 of 1988

Implementation of Fertilizer Subsidy Program

Identification of fertilizer requirement for paddy and other crops.

Regulation of fertilizer imports and stock control.

Assurance of quality and quantity of Chemical and Organic Fertilizers

Conducting programmes to regulate the use of recommended fertilizers for various

crops.

Maintaining soil fertility, structure and soil health in a sustainable manner.

Increasing the use of organic fertilizers.


End hunger, achieve food security and improved nutrition and promote sustainable

agriculture

End poverty in all its forms everywhere

9

Organizational Structure of the Institution 5.4

Position Approved Number Existing Number Vacancies

Director 01 01 -

Deputy / Assistant Director 58 55 03

Accountant 01 01 -

Administrative Officer 01 - 01

Development Officer 25 15 10

Management Assistant 06 03 03

Office Assistant 02 01 01

Driver 09 02 07

Total 103 78 25

Development Programmes and Financial Targets for the Year 2021 5.5

in line with the Implementation of the “Vision of Prosperity”

National Policy

S. No. Targeted Development Programme

Financial

Target

Rs. Mn

Sustainable Development

Goal Expected to be Achieved

1 Providing fertilizer subsidy for paddy

and other crop cultivations.

65,000 1. End hunger, achieve food

security and improved

10

2 Implementation of Interim Fertilizer

Policy.

10.00 nutrition and promote


2. End poverty in all its forms

everywhere

3 Total 75.00

Allocations Received from the Department of National Budget and 5.6

Progress

S.

No.

Targeted

Development

Programme

Financial Target

Rs.

Total

Rs.

Sustainable

Development Goal

Expected to be

Achieved

1 118-02-04-1504

(Recurrent

Expenditure in

accordance with 1st,

2nd

, 3rd

Vote On

Accounts)

22,027,109,010

1. End hunger,

achieve food

security and

improved

nutrition and

promote

sustainable

agriculture

2. End poverty in

all its forms

everywhere

2 426-02-03-1504

(Recurrent

Expenditure in

accordance with 4th

Vote On Account)

13,500,000,000

3 Total of Recurrent Expenditure 35,527,109,010

4 118-02-04-1409

(Capital Expenditure

in accordance with

1st, 2

nd, 3

rd Vote On

Accounts)

11,446,934

11

5 426-01-02-1409

(Capital Expenditure

in accordance with

4th

Vote On

Account)

4,000,000

6 Total of Capital Expenditure 15,446,934

Financial and Physical Progress as per the 1st Vote On Account 5.7

S.

No.

Programme /

Project

Financial

Target

Rs.


Achieved

Expenditure


118-02-04-1504

(Recurrent

Expenditure in

accordance with

1st Vote On

Account)

8,027,109,010 8,027,109,010 100

Importation of

113,000 MT of

fertilizer for paddy

and 25,500 MT for

other crops.

100

118-02-04-1409

(Other

Expenditure in

accordance with

1st Vote On

Account)

446,964 446,964 100 Training- 18

Sample testing- 52

Stock verification-

306

Fertilizer

committee- 15

12

5.8 Financial and Physical Progress as per the 2nd

Vote On Account

5.9 Financial and Physical Progress as per the 3rd

Vote On Account

S.

No.

Programme /

Project

Financial

Target

Rs.


Achieved

Expenditure

Rs.

% Physical

Progress

%

118-02-04-

1504

(Recurrent

Expenditure in

accordance

with 2nd

Vote

On Account)

8,000,000,000 8,000,000,000 100 Importation of

196,000 MT of

fertilizer for

paddy and

227,000 MT for

other crops.

100

118-02-04-

1409 (Other

Expenditure in

accordance

with 2nd

Vote

On Account)

6,000,000 839,153 14 Training- 20

Sample testing- 65

Stock verification-

183

Fertilizer

committee- 09

S.

No.

Programme /

Project

Financial

Target

Rs.


Achieved

Expenditure


118-02-04-1504

(Recurrent

Expenditure in

accordance with 3rd

6,000,000,000 5,907,179,505 98 Importation of

113,000 MT of

fertilizer for paddy

and 240,103 MT

for other crops.

100

13

5.10 The 4th

Vote On Account is reported under the State Ministry.

5.11 Procurement Activities - Procurement Plan and Progress

Procurement for the supply of fertilizer subsidy for paddy was carried out by the Ministry of

Agriculture.

Procurement

Type

Allocation

Rs. Mn Source of Funding

Expenditure

Rs. Mn Progress

Goods

1st Vote On

Account

8,027 Government of Sri

Lanka 8,027

Procurement has been

completed

2nd

Vote On

Account 8,000

Government of Sri

Lanka 8,000


completed

3rd

Vote On

Account 6,000

Government of Sri

Lanka 5,907


completed

4th

Vote On

Account 13,500

Government of Sri

Lanka 10,502


completed

Vote On Account )

118-02-04-1409

(Capital

Expenditure in

accordance with 3rd

By-Law Account )

5,000,000 4,448,151 89 Training- 09

Sample testing- 42

Stock verification-

164

Fertilizer

committee- 14

14

5.12 The Way of Internal Audit was conducted and the Progress obtained

Targets according to the Internal Audit Plan and Progress

S. No. Ministry / Institution Targets

Progress (Overall Audit including

Meetings / Reports / Field

Observations)

No No No

5.13 Human Resource Development and Capacity Development (Progress


Officers have not been directed for local or foreign training during the relevant period.

5.14 Specific Reasons for achieving / not achieving Human Resource

Development Goals

Due to Covid-19 epidemic, human resource development activities have not proceeded as

usual.

5.15 Physical Progress of Foreign Aided Projects

Foreign aided projects have not been implemented in due course.

5.16 Challenges

Failure to update legal provisions.

Minimize the awareness of the farmers about the fertilizer subsidy

recommendation and the method of its usage.

Overuse of fertilizer for cultivated lands.

Misuse of fertilizer subsidy.

Lack of accurate data on the extent of agricultural land.

15

Weaknesses in the fertilizer stock control system.

Delays in laboratory testing of fertilizer samples.

5.17 Summary Report on How to Achieve Future Targets

As it is essential to maintain the proper importation and distribution of fertilizer in order to

achieve the targets related to the state agriculture, all the operations of the National Fertilizer

Secretariat will be carried out through a computerized system to streamline the importation

and distribution of fertilizer. Also, action will be taken to increase the production as well as

use of organic fertilizer in the country in line with state policies.

6 Lanka Fertilizer Company Ltd

Institution as per the Act 6.1

Lanka Fertilizer Cooperation was inaugurated in 1964, under the State Industrial Act No.49

of year 1957. The said cooperation was re-established effective from 15th

September 1992 as

Lanka Fertilizer Co. Ltd., under the act no. 23 of 1987 which enacted conversion of state co

operations and state acquired companies to be limited liability companies. The above said

company is re-registered under the New Company Act No.07 of year 2007.

Vision of the Lanka Fertilizer Company Ltd 6.2

To be the premiere organization as the guide of the Sri Lankan Fertilizer Market by becoming

diversified and apt in the use of new techniques in the supply of new innovations and

services to the agro and related fields

Mission of the Lanka Fertilizer Company Ltd 6.3

To make the profitability of the Company sustainable by producing, marketing and sale of

fertilizer that is best suited to the fields of agriculture and agrarian services of Sri Lanka in

order to enhance the income, production and profitability of by the maximum contribution of

the Lakpohora family and in compliance with the relevant State Policies.”

Objectives :- 6.4

Providing paddy subsidized fertilizer (60%) allocated by the government to

farmers through Agrarian Service Centers.

Increasing the 6% quota for other crops to 25% by the year 2021, based on state

policy.

16

Improving the process of mixing and handling of fertilizers.

Expansion and development of enterprise resource computer software system.

Expansion of storage facilities to 25.000 MT (150,000 Sq. Ft.).

Development of infrastructure facilities.

Development of organic fertilizer sales systematically.

Establishment of sales outlets for organic products.

Establishment of a mobile service network to distribute existing products.

Expansion of tourist resort network

Functions 6.5

Importation and purchase locally of high quality fertilizer.

Eg :- Local purchases - E.R.P., H.E.R.P. And dolomite

Eg.- Imported Fertilizers - Urea, T.S.P., M.O.P. etc.

Purchase locally of high quality compost fertilizer and organic granular fertilizer.

Preparation of fertilizer mixtures for all crops according to the recommended

ratio given by the National Fertilizer Secretariat.

Distribution and sale of high quality direct and mixed fertilizer through our

regional stores, our dealers and distributors. (Organic and Chemical)

Conducting awareness programmes for farmers on the use of fertilizer and

solving the issues raised in the agricultural sector.

Testing of fertilizer, soil and agricultural products etc by the Laboratory of

Institution.


Goal 2 - End hunger, achieve food security and improved nutrition and

promote sustainable agriculture

Goal 1 - End poverty in all its forms everywhere

17

Financial and Physical Progress of the Programmes as at 30.09.2020 6.7

Activity Allocation

Rs. Mn

Progress

Financial Progress Physical Progress (MT)

Expenditure

Rs. Mn % Units (MT) (%)

Distribution of fertilizer

subsidy for paddy * 38,765.71 14,901.95 38 90,910.08 38

Distribution of fertilizer

subsidy for other crops ** 1,475.28 691.38

47

12,653.45 47

Distribution of organic pellet

fertilizer 112.50 3.26 3 86.84 3

Total 40,353.49 15,596.59 103,650.37

*Fertilizer subsidy for paddy is issued free of charge to the farmer and the General Treasury reimburses the cost.

** Fertilizer subsidy for other crops is issued to the farmer at a concessionary rate and the General Treasury reimburses the difference

in rate.

18

Procurement Plan and Progress 6.8

Procurement

Type

Allocation

Rs. Mn

Source of

Funding

Expenditure

Rs. Mn Progress

Goods 121.08 Company 20.99 17%

Works 277.30 Company 4.05 1.40%

Services 1,308.38 Company 339.50 25.9%

The Way of Internal Audit was conducted and the Progress obtained 6.9

Targets according to the Internal Audit Plan and Progress

S. No. Ministry /

Institution Targets

Progress (Overall Audit

including Meetings / Reports

/ Field Visits)

1 Lanka Fertilizer

Company Ltd

Conducting at least 01

audit committee

meeting quarterly

Meetings Reports Field

Visits

50% - -

Acting as per the annual

internal audit plan - 17 01

* Audit committee meetings could not be held in the first quarter due to the Covid epidemic.

19

Human Resource Development 6.10

Local Training

S. No.

Training workshops

conducted separately

according to the grades

of staff / gender base

No. of

Officers

Participated

Allocation

Rs.

Expenditure

Rs.

1 Management Services

Category - Male (Master

of Public Management)

02

5,000,000.00

830,000.00

2 Management Services

Category - Male

(Master of Business

Administration)

01

Foreign Training 6.11

Not received.


Development Goals

Prioritize health and safety of employees due to the Covid 19 epidemic pertaining in the

country this year.

Issues Existing 6.13

Recovery of specific expenses for the fertilizer subsidy (Rs. 1.5 billion is to be

charged from the General Treasury).

Increasing the share of the institution from the current 6% allocated for other crops to

25%.

20

Upcoming Suggestions 6.14

Use of trains to transport fertilizer within the country.

New projects for organic fertilizer production. As a short term plan, planning a joint

programme with Hyosung ONB company in order to distribute corporate organic

fertilizer using the Lak Fertilizer Marketing Network. As a medium term plan,

increase the use of organic fertilizer to 25%. As a long-term plan, include the

implementation of programmes to reduce the damage to the environment from the use

of chemical fertilizers.

7 Colombo Commercial Fertilizer Ltd

Colombo Commercial Fertilizers Ltd having a history of 142 years old. This company has

been established in the year 1872 by the European Business Community. Presently CCF Ltd

is under the purview of Ministry of Agriculture having the 100% shares owned by the

Treasury.

Vision 7.1

To be the benchmark of a well-run Government owned organization by positively

contributing towards the enhancement of the Sri Lanka Agricultural industry through the

swift manufacture and distribution all agro related products and services.

Mission 7.2

To be the market leader whilst being the premier fertilizer distributer and manufacturer in the

country and taking pride in participating in the execution of the GOSL vision on the

agricultural sector, exploring avenues for self-sustainability through product diversification,

focusing on delivering quality products, and being receptive to needs of all stake holders of

the organization.

Functions 7.3

Importing 40% of the country’s fertilizer requirement and duly distributing among the farmer

community to a subsidized price without any shortage, with the aid of Agrarian Service

Centers. Importing quantities of fertilizers required for other crops and selling them to the

farmers at concessionary rates through Agrarian Service Centers and sales representatives

island wide.

21

Objectives 7.4

Efficiently importing the required fertilizer quantity for the year with the contribution of

National Fertilizer Secretariat and distributing the same duly without any shortage, to a

concessionary rate.

Sustainability development goals and indicators to be achieved by 7.5

the institution

Indicators Living standards of farmer community

Self sufficient agriculture

Goals

No poverty

Zero hunger, food secure and nutrition and promoting sustainable

agriculture

Progress of the Year 2020 and Upcoming Development Programmes 7.6

for the Year 2021

Distribution of chemical fertilizers for paddy

Estimated

Distributions (MT)

Distributions as at

30.09.2020 Percentage

158,000 60,930.75 39%

Distribution of chemical fertilizers for other crops

Estimated

Distributions (MT)

Distributions as at


15,000 12,119.05 81%

22

Distribution of Organic Fertilizer (Compost)

Adding locally available mineral matter to compost fertilizer, converting it into organic

fertilizer as per the quantity recommended by the Sri Lanka Standards Institution and

releasing it to the local market. This project was launched on 27th

July 2020, and production

in this year is expected on starting at 5,000 MT, and it is expected to increase this number

each year. The progress during the relevant period of year 2020 is as follows.

Estimated Distributions Distributions as at


2,500.000 115.580 5%

Procurement Plan and Progress 7.7

Fertilizer Type Estimated

Importation (MT)

Importation Amount as

at 30.09.2020 (MT) Percentage

Paddy Fertilizer

Urea 83,300 44,562.17 53%

T. S. P. 15,500 13,125 85%

M. O. P. 26,000 11,535 44%

Other Crops

Urea 6,800 6,955.5 102%

T. S. P. 1,200 - -

M. O. P. 4,000 - -

S. A. 2,600 2,600 100%

23

The Way of Internal Audit was conducted and the Progress obtained 7.8

(As at 30.09.2020)

Institution Progress

Progress

Meetings Reports Field Visits

Colombo Commercial

Fertilizer Ltd 20% 02 09 01

Human Resource Development and Capacity Development (Progress 7.9


Local Trainings

S. No.

Training workshops

conducted separately

according to grade of

staff / gender base

No. of

Officers

Participated

Allocation

Rs.

Expenditure

Rs.

1 Project Officer 03 200,000.00 300,000.00

2

Management Assistant

(Technical) 01

Foreign Trainings 7.10

The institution has not conducted foreign training.


Development Goals

Due to the Covid 19 epidemic prevailing in the country in the year 2020, the employees of

the company could not participate in local and foreign training workshops.

24

Physical Progress of Development Programmes and Physical 7.12

Progress of Foreign Aided Projects – None

If the Expected Outcomes could not be achieved, Reasons and 7.13

Obstacles for same - None

Challenges –

Lack of officers with technical knowledge

Summary Report on How to Achieve Future Targets 7.14

Future activities are planned as per the government policies and strategic plan of the

Company.

8 Future8.

9 Sri Lanka Freedom from Hunger Campaign Board

(National Food Promotion Board)

8.1 Introduction

The Sri Lanka Freedom from Hunger Campaign Board alias the National Food Promotion

Board is an Institution incorporated by a Parliamentary Act of the year 1973 as Sri Lanka

Freedom from Hunger Campaign Board.

8.2 Vision

Generation of the economic independence and self-confidence through the implementation of

programmes in order to reestablish the pride of the Farming community and less privileged

groups.

8.3 Mission

Implementation of participatory development programmes for skill development in

Agriculture, livestock and the other fields in order to exercise economic independence of the

beneficiaries and to avoid the culture of dependency.

25

8.4 Objectives

Obtaining donations from foreign and local representatives for the social and

economic development in compliance with the developmental programme

prepared by the Government.

Assisting in the institutions and the other Boards in the implementation of the

social and economic developmental schemes.

Providing aids to specified schemes that are focused on the agricultural and

technical development and development and coordination of such schemes.

Making the Non-governmental representatives interested in the implementation

of proposals in the increase in the agricultural and technical production.

Establishments of cooperation with the International Freedom from Hunger

Campaigns and the other similar foreign Institutions, Associations and Societies.

8.5 Sustainable Development Goals and Targets to be Achieved by the

Institution

Goal 2 - End hunger, achieve food security and improved nutrition and promote


# 2.1. By 2030, end hunger and ensure access by all people, in particular the poor and people

in vulnerable situations, including infants, to safe, nutritious and sufficient food all year

round.

#2.2. By 2030, end all forms of malnutrition, including achieving, by 2025, the

internationally agreed targets on stunting and wasting in children under 5 years of age, and

address the nutritional needs of adolescent girls, pregnant and lactating women and older

persons.

Goal 12 – Ensure sustainable consumption and production patterns

#12.9 Support developing countries to strengthen their scientific and technological capacity

to move towards more sustainable patterns of consumption and production.

26

8.6 Organizational Chart

8.7 Financial Targets of the Development Programmes for the year 2021

in line with the Implementation of the “Vision of Prosperity”

National Policy

S.

No.

Targeted Development

Programme

Financial

Target

Rs. Mn


Goal Expected to be Achieved

01 Rice Fortification 30.00 Goal 2 - End hunger, achieve

food security and improved

nutrition and promote


Goal 12 – Ensure sustainable

consumption and production

patterns

02 Traditional Rice Project

Kalankuttiya

6.85

03 Buttala Farm and Compost Project 17.05

04 Plant Nursery - Narahenpita 21.08

05 Plant Nursery - Dehiwala 10.66

27

06 Thanamalwila Farm 7.436

07 Export Agro Product Quality

Improvement and Processing Center 14.71

08 Turmeric Seed Cultivation Project in

Maha Season 2020 / 2021 2.91

09 NFPB Agro Fresh Super -

Narahenpita 0.52

10 NFPB Agro Fresh Super - Dehiwala 3.35

Total 114.57

8.8 Allocations Received from the Department of National Budget and

Progress

S. No.

Targeted

Development

Programme

Financial

Target Rs. Mn


Goal Expected to be

Achieved

426/2/3/1503 Recurrent 75.4 Goal 2 - End hunger,

achieve food security and

improved nutrition and

promote sustainable

agriculture

Goal 12 – Ensure sustainable

consumption and production

patterns

426/2/3/2201 Capital 8.5

28

8.9 4th

By-Law Account, Progress as at 30.09.2020

S. No. Programme

/ Project

Financial

Target

Rs. Mn

Sustainable Development Goal

Expected to be Achieved

Allocation

Rs. Mn

Expenditure

Rs. Mn %

Physical

Progress %

426/2/3/

1503

Recurrent 15 4.15 100 Bills have

been paid

100 (Allocation

Received -

3.75)

426/2/3/

2201

Capital 1 Allocation

have not been

received

No No No No

8.10 Procurement Activities – Procurement Plan and Progress

Procurement

Type

Allocation

Rs. Mn Source of Funding

Expenditure

Rs. Mn Progress

Goods 9.58

Rs. 1 Mn – Department

of National Budget

Rest is Self-Funding

No Tender work

has been done.

Works 28.59

No Procurement

work is in

progress.

Services No No No No

29

8.11 The Way of Internal Audit was conducted and the Progress obtained

Since there is no internal audit division for the National Food Promotion Board, the audit is carried

out by the Audit Division of the Ministry of Agriculture.

Number of Audit Queries received by

the Ministry of Agriculture

Number of Replies Submitted

2 1

Number of audit queries received by the

National Audit Council

18 10

30

8.12 Financial Target and progress included in Development Programmes up to 30.09.2020

S.

No.

Programme / Project

Allocation

Rs. Mn

Progress

Financial

Allocations

Financial

Rs. Mn % Physical Progress %

01 Rice Fortification 1.36

0.87 64.4 Schools - 162

School Children - 31,527

99.8

World Food

Programme

02 Traditional Rice Project

Kalankuttiya

6.52

1.46

22.5 පැ.10,437

(1 kg)

29.5

_

03 Buttala Farm and

Compost Project

18.15 0.63 3.5 Compost - 119,000kg

Pot Mixture -110,300kg

Compost - 59.5

Pot Mixture - 55.2

Self- Funding

04 Thanamalwila Farm and

Soybean Cultivation for

Thanamalwila Farm for

Yala Season - 2020

3.37

0.35

10.6 Manure - 20 Mt

Expected Soybean Yield

- 2.24 / 2 acre

Due to the construction of the

organic fertilizer packaging

building, the production of

manure has not commenced.

Self- Funding

31

05 Mobile programme for

distribution of vegetable

bags

2.89

Income –

Rs.1.86 Mn

06 Plant Nursery -

Narahenpita

23.39 0.87 3.75 Income Rs. -

6.82 Mn

07 Plant Nursery -

Dehiwala

11.02 0.56 5.08 Income Rs.4.00

Mn

08 Local Food Restaurant -

Dehiwala

9.66 0.29 3.04 _

09 Sales Center - Dehiwala

56.97 1.64 Income –

Rs.10.21 Mn

32

8.13 Issues and Challenges

Lack of officers with technical knowledge

Inadequate number of staff

8.14 The Way of Achieving Future Goals

Expansion of the Rice Fortification Project for school lunch programme targeting

school children in 12 districts of Sri Lanka, with the Ministry of Health, the

Ministry of Education and the Ministry of Finance and National Policy in

collaboration with World Food Organization

Introduction of soybean and grain based products to the market under public /

private partnership.

Presentation of food products produced by the Board to the market under public /

private partnership.

Utilizing the media to promote local and traditional food among the people.

state ministry of production and supply of fertilizer and

Documents