Fertiliser prices shoot up

Livingstone Marufu
Fertiliser prices in Zimbabwe’s major towns and cities have risen by up to 40 percent, with manufacturers citing escalating raw material and packaging costs.

This has already sparked consternation among farmers who want Government to intervene immediately.

A survey by The Sunday Mail last week showed that a 50kg bag of Compound D now costs US$41, Urea US$35 and Ammonium Nitrate US$39.

A number of retailers in Harare and Gweru had limited stocks.

Zimbabwe Fertiliser Manufacturers Association spokesperson Mr Tapuwa Mashingaidze attributed the price hike to the “high cost of money”.

He said, “From every side of the economy, raw material prices have surged. The cost of getting money to buy raw materials has gone up so has the cost of packaging material. Based on this, fertiliser prices were bound to go up.

“We just hope that the US$600 million Afreximbank Nostro Stabilisation Facility and the US$56 million Fertiliser Facility will be disbursed timeously to boost production. This will ensure we have enough fertiliser for the season.

“Moreso, we expect the special Cabinet committee on pricing to look at the fertiliser industry and come up with a solution to ensure farmers get an affordable product. We await results of recent engagements involving the Industry and Commerce Ministry, Reserve Bank of Zimbabwe and the fertiliser industry.”

Mr Mashingaidze said adequate fertilisers would be available despite the price increase.

“In terms of stocks, I can’t say the exact figures, but we have around 120 000 tonnes in stock against a demand of 500 000 tonnes. This surge in demand and foreign exchange shortages have caused fertiliser prices to go up.

“Though retail shops may experience periodic shortages, fertiliser will generally be available during the summer cropping season.”

Industry and Commerce Minister Dr Mike Bimha said Government was committed to ensuring farmers get adequate fertiliser timeously and at “reasonable” prices.

“We are happy that fertiliser was put on the (foreign currency allocation) priority list at the beginning of the year, and a facility is already in place for fertiliser purchases for the forthcoming season.

“Farmers should not be worried as fertiliser supplies are already on their way. What’s only left is for the Price Stabilisation Committee to come up with a reasonable price, which will be favourable to farmers.”

Zimbabwe Commercial Farmers Union president Mr Wonder Chabikwa said, “Our production costs are already high, and increasing the price of fertiliser and seed makes life difficult for the farmer. It is ill-timed because farmers have already made their plans and budgets.

“This will reduce the viability of agriculture. Prices of agricultural machinery spare parts have also gone up, and we have not received any formal communication.

‘‘Most suppliers are blaming shortage of foreign currency for the rise in prices. Farmers are not to blame for any of this.”

Zimbabwe requires roughly 250 000 tonnes of AN and a similar quantity of compound fertilisers each summer cropping season.

Major manufacturers include Windmill, Zimbabwe Fertiliser Company, Omnia and Sable Chemicals.

Government is targeting 350 000 hectares of grain and soya bean under Command Agriculture, and an expanded number of beneficiaries under the Presidential Well-Wishers Agricultural Inputs Support Scheme.