Supply-side shortages expected towards September and beyond


by Sanath Nanayakkare

There could be possible supply-side shortages towards September and beyond, First Capital(FC) Research said recently.

"Inflation would be under control over the next 2-3 months while there could be some upward pressure towards September and beyond with the May floods affecting the supply in the current growing season", they pointed out.

Meanwhile, Spices and Allied Products Producers' Traders and Association (SAPPTA) says that rainfall has become something that is difficult to predict and droughts and floods have become a common feature of the climatic trend of Sri Lanka.

"Extreme weather conditions have made production of food crops difficult. Crop yield has dropped drastically compared to some years ago. Recent observations, studies and research suggest that many farmers cope and even prepare for climatic changes to minimize crop failure through mixed crops, agro forestry and a series of other traditional framing system techniques. Extreme climatic events in the last two decades have revealed that resiliency to climatic disasters closely linked to levels of farm biodiversity", SAPPTA says.

Vendors in the vegetable and fruit sector said that the market would experience a decline of supply in the coming months due to the disruption of the current growing session and prices could be rather high for weeks if not months.

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