Farmers will have to wait until August for the prices of fertilisers to reduce as the government needs Sh31.8 billion to subsidise the cost.
Agriculture Cabinet Secretary Peter Munya told the National Assembly Agriculture committee that farmers will have to contend with the current prices as he awaits a decision by the Cabinet to approve allocation of more money for the subsidy.
“The prices are higher in Uganda since the traders get their stocks from Tanzania or Kenya which are transported for long distances to various destinations in Uganda,” Mr Munya said.
Appearing before the committee to answer questions regarding the current high cost of fertilisers and the mitigations put in place, Mr Munya said: “The rise of fertiliser prices is due to the impact of Covid-19, which led to producing countries such as China, Russia and Turkey restricting exports to protect their farmers and heavy consumers such as India, Brazil and USA buying in large quantities, hence creating market scarcity.”
The CS expressed concern that the cost of fertilisers has risen beyond the reach of many small-scale farmers, hence the Cabinet is set to decide on what allocation to give the ministry to mitigate the situation. “I had tabled the request before the Cabinet and I’m awaiting the decision. Whatever they will decide is what I will implement,” he said.
Reduced costs
“Most farmers may not afford the high prices and thus acreage of food crops to be grown will be drastically reduced, leading to food scarcity,” Mr Munya added.
Figures presented by the ministry to the committee indicate that Diamonium Phosphate (DAP) is retailing at Sh6,000 UREA at Sh6,500, Calcium ammonium nitrate (CAN) at 3,900, Nitrogen, phosphorus and potassium (NPK) at Sh4,900, Muriate of Potassium at Sh3,800 and AS fertiliser at Sh3,800
Mr Munya said should the ministry get the Sh31.8 billion, DAP will retail at Sh2,800,UREA at Sh2,700, CAN at Sh1,950, NPK at Sh3,000, while MOP and AS will go for Sh2,500. However, the MPs called for an urgent short-term solution, failing which they will shoot down the supplementary budget expected to be considered by the House when it resumes its sittings after 14 days.
The lawmakers said the planting season has started and farmers will not listen to anything other than reduced costs.
“We cannot face our people and tell them that the Cabinet will decide on the subsidy. They will chase us. We need an immediate solution to tell the farmers who are waiting for us to provide a solution,” said Kabuchai MP Majimbo Kalasinga.
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