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Fertilizer dispute with China

Chinese company demands US $ 8 Mn from National Plant Quarantine Services Dy. Director

7 November 2021 09:48 pm - 23     - {{hitsCtrl.values.hits}}

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Qingdao Seawin Biotech Group Co Ltd, the Chinese company that supplied the controversial stock of fertilizer, demanded   US $ 8 million from Additional Director- National Plant Quarantine Services Dr W.A.R. T.  Wickramaarachchi within three days starting from November 5 and warned of legal action otherwise.  

Sri Lanka rejected the shipment on the basis that samples provided by the company contained harmful bacteria called ‘Erwinia’. However, the supplier disputed it.

The company has sent a letter of demand asking for this payment through its lawyer M.J.S. Fonseka.

Mr. Fonseka says in the letter, “I write on the instructions of my client namely Qingdao Seawin Biotech Group Co Ltd of No. 127,Huizhiqiao Road, High-tech Industrial Development Zone, Qingdao, Shandong, China. I am instructed that the National Plant Quarantine Service of the Department of Agriculture conducted several purported tests on samples of Solid Organic Fertlizer supplied and/or to be supplied by client above named under two contracts between my client and the Ceylon Fertilizer Co. Ltd and Colombo Commercial Fertilizers Ltd respectively. I am instructed that you have under you signature issued a purported test report dated 8th September 2021 bearing Your Ref: NPQS/PATHO/OF/2021/01 stating that the sample of Solid Organic fertilizer bearing No. 388 (Sea Weed Organic Granular) was found to be highly contaminated with gram-positive and gram-negative bacteria and that the "preliminary studies have revealed that bacteria to be Bacillus spp. and Erwinia spp. which can be pathogenic to plants." 

I am further instructed that upon a purported analysis of samples of the product of my client you have under your signature issued a further report dated 27th September 2021 stating inter alia that such "Samples are suspected to be contaminated with several bacterial species including Erwinia.”

Subsequently, by the Final Report dated 4 th October 2021 bearing Your Reference No:NPQS/FT/2021/011 issued by you under your signature you have both samples of Seaweed Organic Granular Fertilizer drawn from load port and the production line "were contaminated with soft-rot causing Erwinia spp" upon carrying out a purported pathogenicity test thereon,” .

The company asserts that it has suffered a loss of US $ million and continues to suffer further loss and damage due to loss of reputation and goodwill as well as existing and potential business.

The company maintains that it is the largest and the number one organic fertilizer manufacturer in China, and its product Seaweed Organic Granular Fertilizer is exported to more than 50 countries worldwide including USA, Germany, Italy, Spain, Australia and New Zealand over long period of time and has an extensive State and private customer base in such countries.

It says the raw materials used in manufacturing the subject products are commercialized organic raw materials, Amino acids, Humic acid, Seaweed and clay. The production process is Roller Double Drying Process at temperature of 600°c.

“All pathogenic bacteria raw materials will be killed and it is free from pathogenic pests and bacteria,” it  says.(Kelum Bandara)


  Comments - 23

  • Nishan Sunday, 07 November 2021 10:07 PM

    They should give the demanded amount if the deal is not legal. Why LC was issued before the test....?

    Be Fair Sunday, 07 November 2021 10:14 PM

    China here we go

    Dee Sunday, 07 November 2021 10:23 PM

    Maybe they could provide a loan of 8mil @ commercial rates to the govt and then take it back as payment?

    Kikazaru Sunday, 07 November 2021 10:40 PM

    It is time the details of the agreement, who signed it and the details of the Letter of Credit is released to the public.

    SL Sunday, 07 November 2021 10:40 PM

    Best thing is to do a third party test as it’s the best possible way to solve this dispute. Why can’t the SL gvt can demonstrate or do a joint test in our labs with a chinese team. This is an international business and both parties have own stories.best is a neutral ground. Issues is that Political ,commercial immature politicians politicizing everything.Always there should be ways to solve disputes

    Seb Monday, 08 November 2021 07:21 AM

    May have been some "personal donations" involved. Just as the Chinese covid vaccines which were more expensive and less effective than other vaccines. Only a personal interest (monetary donation) makes someone choose inferior products that are more expensive.

    saman Monday, 08 November 2021 07:26 AM

    China is NOT our friend. The sooner the politicians in Sri Lanka realise that painful truth, the better for everyone.

    Slow death Monday, 08 November 2021 07:32 AM

    Creating an environment where professionals working for the government will be thinking twice before doing an honest job and risk having to fight a giant battle all alone. The same problem that ruined our police department. Wake up voters vote wisely.

    Punchi Banda Monday, 08 November 2021 07:33 AM

    Superb we have been deceiving our real friends the western institutions for several years. Now let’s see if we are going to manage our new friend China who is here to plunder our resources and facilities for their exclusive benefit

    Bhatiya Siriwardena Monday, 08 November 2021 08:18 AM

    Now China showing their true colours! Go to hell. Government should not betray our scientists. The threats will not remove bacteria. Chinese Company must accept the fact and correct themselves. On the other hand was it a LC condition. Our banks make mistakes too.

    Sambo Monday, 08 November 2021 08:39 AM

    The world warned us on who the Chinese were. But our politicians greedy for large commissions looked unto them for personal gain and now the country is suffering.

    Bull Dog Monday, 08 November 2021 08:44 AM

    The Chinese started the Covid , millions have died and millions infected. Who has held China responsible for that. If they were not guilty of the bad quality of fertilizer why did they change the name of the vessel. They are never to be trusted.

    joshua Monday, 08 November 2021 08:55 AM

    damn good for the Government for placing the order without studying the fertiliser. Cabraal can borrow some money from Nirupama or pay from his bond loot.

    BuffaloaCitizen Monday, 08 November 2021 09:10 AM

    If this was done by India, today all Sinhalese will be ready to stone the Indian Embassy

    Rasika Monday, 08 November 2021 09:12 AM

    Bring this Chinese company to International courts

    Ramesh Monday, 08 November 2021 09:23 AM

    This is the first step of threatening by Chinese. Very soon they will grab the whole country for the money they loaned to Rajapaksei regime.

    RP Monday, 08 November 2021 09:26 AM

    What a nuisance is this? We ordered organic fertilizer and the fertilizer is harmful and we rightfully refused, end of the story. Why another test? what is wrong with our own testing facilities? China is our friend hence, China should respect our findings!

    upulpb Monday, 08 November 2021 09:28 AM

    Chinese invasion in action. Expect more !!

    NightOwl Monday, 08 November 2021 09:40 AM

    China would have been fine with the rejection of this shipment; if we have not acquired liquid Nano Nitrogen from India as an alternative and got it airlifted using Indian Airforce planes.

    Srilankan Monday, 08 November 2021 10:46 AM

    Unite and fight the Chinese.

    Terrence Monday, 08 November 2021 11:14 AM

    Vistas of Prosperity for China in making Sri Lanka a dumping ground

    Sundara Palan Monday, 08 November 2021 11:39 AM

    Great China - buy SL soon!!

    Arnold Monday, 08 November 2021 05:39 PM

    Soon there will be Chinese whipping Lankans to pay what they want.


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