Minister Made

Elita Chikwati Agriculture Reporter
Fertiliser prices have fallen by 13 percent, with industry attributing the development to increased capacity utilisation by manufacturers. The prices are expected to further fall by 7 percent to reach the targeted 20 percent during the 2015-16 farming season.Capacity utilisation at fertiliser manufacturing companies has increased from 30 to 80 percent.

Fertiliser industry spokesman Mr Misheck Kachere, who is also Chemplex chief executive officer, confirmed the fall in the prices.

“We have reduced fertiliser prices by 13 percent. Compound D fertiliser used to sell at $640 per tonne or $32 per 50kg and is now at $550 per tonne or $27,50 per bag,” he said. “Ammonium Nitrate was initially on $700 per tonne or $35 per bag, but has declined to $620 per tonne or $31 per bag.

“A 50kg bag of Compound D fertiliser now costs $27,50 from $32. We are still confident that we will get to our target of 20 percent. Meanwhile, farmers have started buying fertiliser but the sales are still low. We expect sales to pick up once the rains come.”

Farmers have welcomed the fall in prices saying it will help boost production.

Zimbabwe Indigenous Women Farmers Association Trust president Mrs Depinah Nkomo applauded the fertiliser industry for reducing prices.

“Fertiliser is an important input in crop production and if the prices are high, production costs also increase,” she said. “We urge other suppliers to emulate the fertiliser industry. Prices of other inputs such as seed and chemicals should also come down.”

Mrs Nkomo urged Government to consider the subsidising prices of all inputs to reduce production costs and boost food production.

“We need irrigation and other farm implements. Government should ensure they are affordable so we can increase production,” she said. The fertiliser industry has assured farmers that it had enough fertiliser this farming season. The industry has over 50 000 tonnes of the commodity in stock.

It ruled out fears that developments at Sable Chemicals would affect supplies. The Midlands-based firm is now operating at 10 percent capacity due to power challenges. Meanwhile, Government has released $14,6 million towards payment of farmers who delivered their maize to the Grain Marketing Board during the 2014/15 and 2015/16 seasons.

Treasury will also release more money next week to pay for all the wheat that has been delivered to the GMB depots. To date, GMB has paid a cumulative $114 million to farmers delivering maize, small grains and wheat to the parastatal’s depots. Agriculture, Mechanisation and Irrigation Development Minister Dr Joseph Made yesterday said the release of $14,6 million reduced the outstanding money owed to farmers to $16,4 million.

“Cabinet has immediately released the money to speed up support to farmers to acquire inputs to start the season. This is direct to GMB and it will enable us to clear outstanding money for the 2014/15 maize payments and 2015/16 part payments

“I am grateful to Treasury for appreciating the confidence farmers have in Government. I urge GMB to speedily pay farmers without diverting any cent,” he said.

Dr Made raised concern over the increase in inputs prices and said this defeated the whole purpose of empowering farmers. “We appeal to input suppliers, particularly seed, to reduce costs. Farmers have been given resources to procure inputs but to take everything from them will make their lives difficult.”

Dr Made expressed concern that input suppliers were increasing prices when the Reserve Bank of Zimbabwe had reduced interest rates on loans.