AGRICULTURAL INPUTS 78/79/80

LOAN WILL FINANCE 37 TO 43 PERCENT OF THE COST OF FERTILIZER IMPORTS DURING THE REMAINDER OF 1979 AND 1980. IMPORTS WILL CONSIST OF 264,000 TONS OF UREA, 48,000 TONS OF TRIPLE SUPER PHOSPHATE (TSP), AND 48,000 TONS OF N: P: K (A COMPOUND FERTILIZER). THE PROJECT LOAN FORMS A PART OF THE GSL PROGRAM TO ALLEVIATE CONSTRAINTS IN THE FARMER FERTILIZER MARKETING SYSTEM WHICH FAILS TO MEET 40 PERCENT OF SMALL FARMER DEMAND FOR FERTILIZER. BASED ON THE ASSUMPTION THAT THE GSL WILL IMPLEMENT IMPROVEMENTS TO THE FERTILIZER MARKETING SYSTEM ALONG THE LINES OF A MAJOR STUDY FINANCED BY THE FEDERAL REPUBLIC OF GERMANY, THE INCREASED SUPPLY OF FERTILIZER SHOULD ENABLE 90 PERCENT OF PADDY FARMERS WITH 5 ACRES OF LESS TO USE FERTILIZER, AND SERVE 85 PERCENT OF FARMERS IN RAINFED AND IRRIGATED AREAS. IN ADDITION TO CONTRIBUTING TO IMPORT COSTS, GSL AND OTHER DONORS ARE FINANCING A UREA PLANT WITH A CAPACITY OF MORE THAN 300,000 TONS PER YEAR WHICH IS EXPECTED TO COME ON-STREAM IN LATE 1979 OR EARLY 1980. THIS PLANT WILL MEET DOMESTIC UREA REQUIREMENTS THROUGH THE MID-1980"S.