The quarrying sector which provides material for the construction industry, a vital cog in the economy is in dire straits due to the current foreign exchange scarcity in the country that has brought imports of ammonia nitrate, an industrial chemical used as an explosive for quarrying, to a halt, according to National Metal Products Association officials.
Adding fuel to the fire , A company that was importing ammonium nitrate used for blasting rock was selling at high prices using a Defence Ministry import permit and directed prices, putting the construction material suppliers in difficulty, an SJP MP has charged.
State Minister for Trade Nalin Fernando said the issue had been raised in cabinet.Opposition legislator Hesha Withanage said ammonium nitrate, cost about 540 dollars a tonne in the international market which worked out to around 200 rupees a kilogram.
“Even if it costs more and you add all other expenses it can still be given for 700-800 rupees a kilo,” Withanage told parliament.
Progress of the quarry industry which offers close to one million direct and indirect employment (over 300,000 direct and 500,000 indirect jobs) and serves as a vital component in the construction industry has come to a standstill due to lack of attention by the authorities who have turned a deaf hear and a blind eye to the grievances of the industry, National Metal Product Association leading member alleged
He noted that officials had been briefed about the plight of the industry which cannot go on without the industrial chemical which is not being imported due to the forex crisis.
Ammonia nitrate is imported by a single entity and it is regulated by the Ministry of Defense.
The employers are unable to pay wages of workers and service loans obtained from banks and leasing companies for investments, he added.
The industry comprises around 1,828 quarries and undermining the quantum of banking and leasing facilities offered to the industry could adversely affect the banking and leasing sectors of the country, the Association officials said.
Authorities authorities had issued instructions ordering the product to be sold 1,910 rupees, he claimed MP Withanage said.
When State Trading Company was importing rock blasting explosives there was no such problem,he claimed. .
Now there was only one company supplying the product and the importer in question had several persons with the name Rajapaksa as directors, Withanage claimed, questioning whether the government was creating opportunities for favoured parties to fleece the people during an economic crisis.
“We will not say silent, if this is what the President is allowing to happen,” he said.
Trade Minister Nalin Fernando said there appeared to be a problem with blasting powder and it has been discussed at cabinet.
The STC used to import the produce for many years from an Indian supplier and India had banned exports, leading to permits being given by the Defence Ministry to other importers he said.
“Yes the Defence Ministry can’t decide the price and our Chairman said in a letter to the defence ministry that going forward STC is the agency in charge of blasting powder.”
He said the matter would be discussed further to find a solution but he was not in favour of imposing price controls.
“There is no need to bring in a controlled price, we can discuss it and reduce it,” he said. “If we bring in a controlled price, we may lose suppliers and also we must look for a way to bring in the goods quickly, because there is a shortage.”
