President Samia to launch fertiliser scheme in August
Fertilisers are tax free in Tanzania. However, there are six indirect taxes and charges that contribute to the high prices of fertiliser even before reaching farmers
What you need to know:
- Unscrupulous traders have been hiking the prices arbitrarily on ground of Covid pandemic and the Russia-Ukraine conflict yet sometimes this was uncalled for, hence the government sought to reinstate FBPS, and control prices.
Morogoro. President Samia Suluhu Hassan will inaugurate the country’s fertilizer subsidy programme during Farmers Day (‘Nane Nane’) in August this year.
This was revealed by Agriculture minister Hussein Bashe here on Tuesday, saying the Head of State has made it clear that she was determined to revolutionise agriculture in the country.
“In this fiscal year (2022/23), the government has committed itself to provide Sh150 billion as a subsidy package for fertiliser, to smallholder farmers, a response to the world’s commodity price upsurge.
He added: “The government has also reintroduced the Fertilizer Bulk Procurement System (FBPS) through which a price cap for fertiliser will take effect, to stop businesses from hiking prices as witnessed in recent months.”
Unscrupulous traders have been hiking the prices arbitrarily on ground of Covid pandemic and the Russia-Ukraine conflict yet sometimes this was uncalled for, hence the government sought to reinstate FBPS, and control prices.
“I won’t hesitate to cancel the licence of any company that will not implement the FBPS and if it happens that all registered companies reject government directives, then I will have no means but to deregister them.
“I know we will encounter some fertilizer crisis for a few months, but the situation would normalise again,” said the Agriculture minister.
Components of the price for fertilizer in Tanzania as primarily an imported commodity from international suppliers, global commodity and transport prices are the key determinants of the price that fertilizer users in Tanzania pay for the input.
A study on fertilizer supply in Tanzania estimated the average delivered cost of fertilizer to several upcountry regional trading centres to be more than $600 per metric ton, of this price, the free-on-board (FOB) commodity price at the source accounted for 65 percent of the total price, whereas transport from the shipping port to Dar es Salaam and on to the trading centres accounted for 22 percent.
For his part, Prof Palamagamba Kabudi, who is the Kilosa legislator said: “Our aim is to make Kidete Ward in Kilosa District the country’s hub for red onion (Red Bombay).
“Therefore, subsidised fertilisers are needed to help farmers’ access to the product at an affordable price hence increase their output.”
According to Prof Kabudi, price hike as far as accessing fertiliser was concerned, farmers, mostly from low-income earning households, were left out and could not afford to purchase adequate amounts of fertilizers, yet they needed it, thus failing to realise their dream of making the ward as a hub for Red Bombay.
Media information suggested that in 2019, Tanzania sold 39,000 tonnes of onions to its neighbouring countries of the East African Community (EAC), fetching at least Sh38 billion. Yet the following year at least 42,000 tonnes were exported valuing Sh42.5 billion.
The move has indicated that there are huge marketing opportunities for the crop, particularly in the East Africa Market but also the Sadc and the newly introduced market of The African Continental Free Trade Area (AfCFTA), whereby Tanzanians ought to capitalise on them and aim higher
