The Indian government has agreed to provide the $55 million loan through the Export-Import Bank of India. The loan is being obtained for the procurement of urea for the 2022/23 ‘Maha’ harvest season.
What led to this?
* The country is facing a near 50% crop loss due to a decision of President last year to ban imports of chemical fertilisers
* The decision led to widespread farmer protests
* Sri Lanka is going through the worst economic crisis since its independence from Britain in 1945.
* The economic crisis has prompted an acute shortage of essential items such as food, medicine, cooking gas and other fuel, toilet paper and even matches, with Sri Lankans for months being forced to wait in lines lasting hours outside stores to buy fuel and cooking gas.