Fertiliser industry pledges adequate supplies
THE fertiliser industry has pledged adequate supplies of the commodity during 2018/ 19 farming season after suppliers of raw materials agreed to re-open lines of credit for the sector.
Fertiliser companies have had their raw materials withheld in bonded houses in the country and at the ports as suppliers demanded full payments before releasing raw materials. This was largely due to foreign currency shortages.
However, as a result of uncertainty that existed during the old dispensation, the suppliers insisted on releasing the raw materials upon payment, resulting in the sector failing to satisfy the local market as the Reserve Bank of Zimbabwe struggled meet foreign currency demand.
Fertiliser Manufactures Association spokesperson Tapiwa Mashingaidze told TheHeraldBusiness that while the sector faced a plethora of challenges including acquiring foreign currency from the central bank and recent dry spell that resulted in subdued demand, preparations for the next season were underway.
“Following the coming in of the new leadership in the Government, there is renewed confidence among suppliers and a number of them have started helping our members. With the old dispensation, international suppliers were refusing with lines of credit. There was a lot of risk on their part to help us and there was also mistrust.
“Given that there has been collaboration and improved relationship with international suppliers, we want to make sure there will be more fertiliser in rural areas, growth points and farming communities. With the arrangements we have on the ground, I can promise the nation that it will be possible for the forthcoming season,” he said.
Mr Mashingaidze said there had been improved supply of foreign currency to the sector with many players readying themselves to supply ammonium nitrate.
“There has been efficient allocation of foreign currency to the sector by the central bank towards end of the year and there has been general improvement in the supply of top dressing fertiliser. However, the challenge is that demand has been somewhat subdued. Now our focus in 2018 /2019 is to avoid the problems of the past,” he said.
Key fertiliser manufacturers in Zimbabwe are Windmill, Zimbabwe Fertiliser Company, Omnia and Sable Chemicals. Some Government driven agriculture programmes such as the Command Agriculture, the Presidential Input Support Scheme and contract schemes by the private sectors have pushed up the demand for fertiliser.