Fertiliser controversy Chinese company says it incurs US $ 1.6 million in demurrage

• Insists on compensation , ready to go for arbitration in Singapore
• Company Director Song Hai Mei said the Attorney General was mediating now to resolve the matter

By Kelum Bandara   

Qindao Seawin Biotech Group Company Ltd, the Chinese supplier of the disputed stock of fertiliser, said it had incurred US $ 1.6 million in terms of demurrage for its shipment held up due to denial of access to any Sri Lankan port, an official said.  

The Sri Lankan authorities declined access after Sri Lanka National Plant Quarantine Service (NPQS) said it found harmful bacteria called ‘Erwnia’ in the samples of fertiliser provided by this company. However, the Chinese firm disputed it saying its product was safe according to the test done by Sri Lanka Standard Institution (SLSI) third party organisation- Schutter Group chosen by Sri Lanka.  

Company Director Song Hai Mei told Daily Mirror the Attorney General was mediating now to resolve the matter.  

“We ask the relevant parties in Sri Lanka to compensate us for our losses including the damage to the reputation of our product,” she said.  

The company said it would not budge from its stand to go for arbitration in Singapore on this matter and to file action against the National Plant Quarantine Service.  
“Our products are qualified. We participated in the bidding process according to the legal procedure. We offered the most favourable price. But we were treated unfairly. Two Sri Lanka government departments have different test results for our sample. Sri Lanka Standard Institution’s test result is qualified. Only the NPQS test result is unqualified. The third party test agent - Schutter Group, was nominated by the buyer. Its test result is also qualified. Yet, we qualified the test conducted by the international third party designated by Sri Lanka,” she said.  
She said, according to the test results of SLSI, the product does not contain Erwinia. 

• According to the test results of SLSI, the product does not contain Erwinia.