GOVERNMENT is concerned about the high prices of fertiliser saying they are pushing up the cost of grain, piling more misery on long suffering citizens.
A bag of fertiliser is being sold for anything between US$36 and US$42, way beyond the reach of many small-holder farmers.
Lands and Agriculture deputy minister, Vangelis Haritatos, said it was shocking that fertiliser was more expensive in Zimbabwe than in Zambia which is far from the port.
He was speaking at an annual “smart farming” indaba on Wednesday.
The event was organised by a local financial advisory firm, Global Renaissance Investments (GRI).
“How can fertiliser in Zambia be cheaper than in Zimbabwe? We have always known everything in Zambia is more expensive than in Zimbabwe, simply because they are further away from the port. So, anything that’s imported, anything that's coming through to them has that additional cost of transport,” Haritatos said.
“So, if I am receiving something in Harare and you are receiving something in Lusaka it might be from the same supplier so it’s only obvious that in Lusaka it has to be a little bit higher because of transport costs.
“But, I think the opposite is the case. You start questioning and saying why is it so expensive when it is closer to port? I think that’s where the question is. I don’t want to say too much, but that’s where we are running in.”
- US$200K armed robber in court
- Massive ZRP vehicle theft scam exposed
- Building narratives: Chindiya empowers girls through sports
- SRC move, an exercise in futility
Keep Reading
Farmers are complaining about the high cost of fertiliser at a time when the current season has a national deficit of 990 317 of these critical chemicals.
Haritatos said he had engaged his counterparts in the ministries of Finance and Industry over the matter.
He said the major problem was that the fertiliser houses were causing substantial rises in the costs of grain through their high prices.
“So, what that means is that with fertilisers that expensive, the cost of our grain is artificially expensive,” Haritatos said.
He said reducing the cost of fertiliser would bring down grain prices.
“And we don’t want to cut margins, our farmers’ margins, but what we want to do is we want to make our produce more attractive internationally so that at least our crops can find themselves on international markets.”
Zambia-based regional fertiliser manufacturing giant, United Capital Fertiliser (UCF) Limited is set to invest US$700 million in the supply of fertiliser and construction of Compound D and Urea fertiliser manufacturing plants in Zimbabwe next year.
The UCF investment is part of its regional expansion plans.
Construction of a state-of-the-art fertiliser manufacturing plant slated to commence in early 2024 will begin with the Compound D plant, which is expected to contribute to the attainment of self-sufficiency in the supply of fertiliser in Zimbabwe.
