News
Chicken and egg production hit by dollar crisis
ECONOMYNEXT – Chicken meat production has plunged 30 percent and egg output 40 percent due to the depreciating rupee pushing up costs of feed imports further affected by foreign exchange shortages, an industry official said.
“Small and medium scale farmers are leaving the business due to feed shortages and because big poultry companies are stopping buy back schemes,” Ajith Gunasekera, President of the All Island Poultry Association said.
Broiler meat output has fallen 30 percent to 12,000 metric tonnes a month from 18,000 metric and prices have shot up, he said.
A kilo of chicken sells around Rs. 1,200, up from around Rs. 460 before the crisis hit. The official inflation rate rose 39 percent in the year to May 2022.
Inflation and currency depreciation have put protein in particular out of reach of the less affluent pushing up malnutrition. Basic starch in the form of rice has rise from 105 rupees a kilogram to 230 rupees a kilogram after the latest bout of money printing while people are losing jobs and wages are cut in the private sector.
Doctors at Lady Ridgeway Childrens Hospital have said they are seeing higher levels of malnutrition among children.
Expatriate workers are being rapped for sending money to their inflation-hit families outside the official banking system to take advantage of much higher exchange rates available outside banking channels.
Eggs which were around 18 to 25 rupees before the latest money printing bout have now shot up to 43 to 50 rupees with production down 40 percent amid feed shortages.
Gunasekera said daily egg production which was around 700,000 to 800,000 has now fallen to around 400,000.
“Chickens are also laying fewer eggs due to nutrition problems,” he said “A chicken will usually lay about one egg a day but without proper feed they will lay fewer eggs.”
Egg prices are up partly due to high transport costs from Kuliyapititya where most of the large egg farms are located to Colombo, he said.
About 73 percent of the cost of raising broilers was feed. Maize which was Rs. 40 to 45 a kilogram has now doubled with supplies low following the failure of the Maha season due to the chemical fertilizer ban. Due to reduced paddy milling, rice polish is also not available.
Forex shortages have made it difficult to import maize or soya meal. The industry is hoping to get some inputs from the Indian credit line.
Latest News
Sun directly overhead Nittambuwa, Algama, Malwana, Aranayake, Meegahakiula and Panamkadu about 12.09 noon today (04)
The sun is going to be directly over the latitudes of Sri Lanka from 28th of August to 07th of September due to its apparent southward relative motion.
The nearest places of Sri Lanka over which the sun is overhead today (04) are Nittambuwa, Algama, Malwana, Aranayake, Meegahakiula and Panamkadu about 12.09 noon.
News
Norochcholai digs into dwindling coal stocks, two units slash generation
Plant’s output cut from 270 MW to 140 MW amidst dwindling stocks; energy analysts warn system remains “at a razor’s edge”
By Ifham Nizam
The Norochcholai coal-fired power plant is now digging into the last dredges of its coal stock, with two operational units forced to slash generation from around 270 MW to just 140 MW on Sunday as the plant ran critically short of fuel, according to independent energy analysts and sources familiar with the National System Operator (NSO).
The sudden reduction of approximately 130 MW in coal generation has once again exposed the fragile state of the country’s power supply arrangements, with the plant understood to have coal stocks sufficient only until Friday night.
“This is not how a coal plant is expected to operate. They are digging up the last dredges of coal from the plant,” an independent energy analyst told The Island.
The analyst questioned why the units had been allowed to reach this stage without earlier intervention, arguing that at least one unit should have been deloaded around 10 days ago to conserve the remaining coal.
Had that been done, the analyst said, the country could also have reduced its dependence on more expensive diesel-fired generation during the period when
coal stocks were being conserved.
The latest NSO generation figures highlight the continuing pressure on the system.
Around 7 p.m. on Sunday, when the night peak was reached, total demand stood at 2,552.7 MW. Coal contributed only 282 MW, while major hydro accounted for 1,215.8 MW and thermal-oil generation for 791.9 MW.
The night peak of 2,552.7 MW was substantially higher than the daytime peak of 2,246 MW, according to the NSO Generation Summary for August 30.
The most immediate concern is the remaining coal stock at Norochcholai.
Sources said the plant has coal only to Friday night, making the timing of the next shipment critical.
The first shipment under the emergency arrangement is expected to arrive on Friday, September 4, but the coal unloading will have to begin on the same day if
the power plant is to continue operating without further significant deloading.
That creates another potential vulnerability, with rough sea conditions posing an additional challenge to unloading operations.
Energy sector sources said that even the arrival of the September 4 shipment would not completely eliminate the danger.
The next shipment under the new coal tender would need to commence unloading around September 15. Any significant delay beyond that could again force the Norochcholai units to operate at reduced output.
“We are still at a razor’s edge”
The independent energy analyst said the situation should not be viewed merely as a question of whether a particular vessel arrives on time.
The situation also means that any further reduction in coal generation could have a direct impact on the use of oil-fired power generation, potentially increasing the cost of electricity generation.
The latest NSO figures already show the important role being played by thermal-oil generation during the evening peak, when demand rises sharply.
The analyst questioned the rationale behind allowing the coal units to continue operating at higher loading until stocks reached critically low levels instead of taking measures earlier to stretch the available inventory.
News
22A: BASL decides against making written submissions after SC refuses to grant it right of reply
The Bar Association of Sri Lanka (BASL) has informed the Supreme Court that it would not tender written submissions in respect of the petitions challenging the 22nd Amendment to the Constitution, which were heard on September 1 and 2.
The BASL said it had initially decided not to make written submissions after being deprived of the right of reply when the Solicitor General, appearing for the State, made submissions and explained the rationale and justification for the Bill.
The BASL pointed out that the Solicitor General, who made submissions at the end of the second day of the hearing, had not made a policy document available to the petitioners.
It also said the petitioners had not been given an opportunity to respond orally to the Solicitor General’s submissions or to address the Court on certain questions raised by the judges during their exchanges with the Solicitor General. (SF)
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