Minister Chinamasa

Elita Chikwati Agriculture Reporter
Government is considering scrapping duty on imported fertilisers this season to help reduce production costs and increase farmers’ viability, a senior official has said.

This comes as the fertiliser industry also announced a 20 percent price decrease in all fertlisers, a move that is expected to boost agricultural production.

Agriculture, Mechanisation and Irrigation Development Minister, Dr Joseph Made, said discussions were underway between his ministry and the Ministry of Finance and Economic Development on duty on imported fertiliser.

Finance and Economic Development Minister, Cde Patrick Chinamasa, announced a 25 percent duty on imported fertilisers when he presented the Mid-Term Fiscal Policy recently.

Minister Made

Dr Made said talks to reverse that announcement were underway as that would cause a shortage of fertiliser or a steep price increase beyond the reach of farmers.

“We are in consultations with the Minister of Finance and Economic Development on the issue of duty on fertiliser imports.

“There are indications that the duty will not be put on fertiliser because we have to provide farmers with adequate inputs,” he said.

Dr Made said Government was also speeding up the More Food for Africa programme to install irrigation equipment. He said engineers from the Department of Irrigation were on the ground to assist farmers.

“It is also critical that all arrangements relating to reduced electricity charges and lowering interest charges are in place to make inputs cheaper.

“Farmers already have irrigation, but tariffs of electricity must go down consistent with the interest rates,” he said.

He applauded Cde Chinamasa on his efforts to support the agricultural industry.

“Of all these years, in terms of the Ministry of Finance in relation to the (Mr Tendai) Biti era, Cde Chinamasa has put us (agriculture industry) in a better position to prepare for the agricultural season even when the economy is facing challenges.

“Farmers must complement Cde Chinamasa for his efforts to pay for grain delivered to the Grain Marketing Board. Hopefully, the second tranche to clear outstanding money will come soon and it will put farmers in better position.

“Cde Chinamasa is also assisting with funds for cloud seeding and we will be guided by the rainfall forecasts,” he said.

Presenting the mid-term fiscal policy recently, Cde Chinamasa said in light of challenges faced by agriculture and the impact on economic growth, Government would reduce power tariffs for strategic minerals and sectors such as irrigation, tourism and manufacturing to drive growth and compensate for losses in agriculture, which impacted on growth prospects.

He said Government would also take advantage of the prevalent abundant water bodies in farming districts to boost irrigation.

“Government has invested heavily in dam construction, with outlays of more than $227 million since 2010. This is meant to minimise reliance on rain-fed agriculture, which is now being affected by the vagaries of climate change and erratic rainfall patterns.

“Government is, therefore, prioritising rehabilitation and expansion of irrigation schemes, focusing on idle water in dams across the country,” he said.

During the first half of 2015, $1,6 million was availed towards commissioning of 10 irrigation schemes.

Fertiliser industry spokesman, Mr Misheck Kachere, said the industry was increasing capacity from 30 percent last season to 80 percent this season, but would still need to import 120 000 tonnes of ammonium nitrate as there would be a shortfall this season.

Government requires $1,7 billion to fund the 2015 summer cropping season with $1,3 billion required for crop production.