Zimpapers Logo

The fertiliser industry says it has over 100 000 tonnes of fertiliser in stock, but yet to be disbursed as the companies are waiting for payment from Government.

At a meeting with the fertiliser industry chairman Mr Misheck Kachere yesterday, Agriculture, Mechanisation and Irrigation Development Minister Joseph Made said Government would pay the companies after the release of the fertiliser. He said it was critical that farmers got the fertilisers on time for a successful season.

“We understand the fertiliser industry requires funds to be able to move the commodity to farming areas and the money will be made available.

“However, we should agree that you move the fertilisers and get your money later. We should not have a repeat of a situation whereby we pay you a deposit and you start complaining of power cuts, water and spare parts as has been happening in the past,” he said.

Mr Kachere said the sector would release the fertiliser but would have to find mechanisms to get payment.

He said the situation would have been better if Government had at least paid a 30 percent deposit to enable them to continue producing.

“The industry is failing to get assistance from local banks, which are facing liquidity problems and do not have enough funds. We are only getting financial support from external sources. The sector has overborrowed and can no longer access extra funds. As such, it is holding onto the fertiliser as collateral,” Mr Kachere said.

He said the fertiliser industry had been looking for US$30 million for the past three months but the financial institutions have not been forthcoming.

“Fertiliser companies had to borrow as individuals. Moreover, Government still owes the industry US$11 million for the fertiliser that was supplied during the winter cropping season,” Mr Kachere said.

Government is, however, understood to be seeking US$11 million from Treasury to pay for the fertiliser.

Minister Made said the fertiliser industry needed to treat indigenous farmers in the same way they treated former commercial farmers.

“These used to get stop order facilities and loans for inputs. Farmers have done well in cotton, tobacco and maize and you should have confidence in these farmers. The fertiliser industry should develop a relationship with farmers and have them as its customers rather than have Government as their customers,” he said.

Minister Made said farmers should take advantage of the season to boost production, adding this could only be attained if critical inputs such as fertilisers were availed timeously. “Farmers should plant on time to realise high yields and be able to pay back their loans,” he said.

This year, the Meteorological Services Department has predicted a normal to above normal rainfall season.

The fertiliser industry has the capacity to produce 560 000 tonnes of fertilisers, 360 000 tonnes compounds and 200 000 tonnes ammonium nitrates.

Production can increase to 1,2 million if farmers start using blends. So far 100 000 tonnes of fertilisers have been produced and the sector is ready to import the commodity in case of a deficit.

Meanwhile, a survey by The Herald shows that fertiliser and maize seed are readily available on the market.

The price of a 50kg bag of maize seed ranges from US$55 to US$85 while a 50kg bag of fertiliser costs between US$26 and US$32.