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Fertiliser prices shoot up

20 Jan, 2017 - 00:01 0 Views
Fertiliser prices shoot up

The ManicaPost

Samuel Kadungure Senior Reporter—-

THE retail price of top-dressing fertiliser has shot up drastically with a 50kg bag costing between $38 and $50 as businesses take advantage of current shortages and high demand to make super profits.

Ammonium Nitrate (AN) is in short supply and high demand amid fears that the current cropping season – dubbed the mother of all agricultural seasons – risk going to waste owing to its acute shortage at a time when rains are continuing, thereby causing excessive leaching of water-soluble plant nutrients from the soil.

Businesses are charging $49 for a 50kg bag in Nyazura; $38 in Rusape and $39 in Mutare and Headlands.

The farmers’ woes have been compounded by arrogance on part of businesses that are refusing to accept payment in bond notes and Point of Sale (POS), demanding United States of America dollars.

Reserve Bank Governor, Dr John Mangudya, said Government was working flat out to avert the shortages.

“The shortage of fertiliser it due to high demand necessitated by an increase in hectarage and leaching as a result of the incessant rains, which means farmers have to apply more fertilisers,” said Dr Mangudya.

“We are glad that fertiliser raw materials have been included on the top import priority list given their importance to agriculture, which is one of the key sectors of the economy.

“Given the demand of fertilisers at this stage, we have seen it judicious to include it on the list as most farmers are now in dire need of to-dressing fertiliser,” said Dr Mangudya.

It is illegal for anyone to refuse payment in bond notes and through POS.

Zimbabwe Famers Union director, Mr Paul Zakaria, said the issue of exorbitant prices was difficult to control as demand for top-dressing fertiliser was too high.

“That is what happens when top-dressing fertiliser is in short supply and it is difficult to control.

“It is a challenge that many farmers are facing, and sadly this is happening at a critical time when farmers need to apply it as the incessant rains are washing away all the nutrients in the soil. Farmers need to apply more fertilisers and it is not available, the situation is really terrible,” said Mr Zakaria.

Manicaland is known for mostly sandy and low-activity clays soils with high water infiltration rates, low nutrient retention capacity and low organic matter contents.

“The high prices at which fertilisers are being sold at, incessant rains and outbreak of fall armyworm will push the cost of production up while the market (producer price) remains static.

“If you look at the fall armyworm, pesticides are also not readily available. The few that were available, were expensive and sold out, and farmers have to export, but the foreign currency is not there.

“These are some of the things that will certainly compromise the potential yield,” Mr Zakaria.

The fall armyworm has destroyed more than 400 hectares of maize in Manicaland.

Acting Agritex head for Manicaland, Mrs Phillipa Rwambiwa, last week revealed that 15 percent of the crop in the province was affected by leaching of nutrients and farmers’ failure to apply remedial top-dressing fertilisers.

Mrs Rwambiwa urged farmers to apply fertiliser (especially nitrogen) in several small applications, rather than all at once, and placing fertiliser at the zone of maximum root activity of crops.

Mr Solomon Ganyiwa, of Nyazura feels Government should regulate fertiliser prices because they are a critical farming input.

“Our unscrupulous businesspeople are at it again. A bag of AN fertiliser now costs $48.

“Where on earth are our farmer organisations when we are being robbed in broad day light? To worsen matters, some are now declining bond notes. Where is the law?” said Mr Ganyiwa.

Shortages of chemical fertiliser occur every year, and previously Government fast-tracked shipments by making a government-to-government deal with China. The country has been facing an acute shortage of fertiliser as the country’s biggest fertiliser producer, Sable Chemicals, is operating at 25 percent capacity due to financial and other challenges.

While Sables has the capacity to produce 240 000 tonnes of fertiliser, the company has not been able to meet the AN annual requirements of 150 000 per annum.

Other producers such as the Zimbabwe Fertiliser Company, Zimbabwe Phosphate Industries, Omnia and Windmill have drastically scaled back production, citing high cost of raw materials and lack of foreign currency needed to buy them.

 

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