FAR FROM ENOUGH

State sets aside Sh5.7 billion fertiliser subsidy

Sh32bn was initially apportioned, but reallocated to the general election

In Summary

• Munya said the money will subsidise 114,000 metric tonnes (2,280,000 50kg bags) for farmers growing food crops to enhance food security.

• He said government agencies will sell fertiliser to farmers at agreed subsidised prices. However, Sh32 billion was needed.

Agriculture CS Peter Munya at Kilimo House, Nairobi, on April 1
AT LAST: Agriculture CS Peter Munya at Kilimo House, Nairobi, on April 1
Image: DOUGLAS OKIDDY

The government has set aside Sh5.73 billion for fertiliser subsidies after farmers complained they were getting nothing and predicted a food shortage.

Fertiliser will be available at NCPB stores countrywide on Saturday, Agriculture CS Peter Munya said on Friday.

That's far from enough and is expected to go to the neediest, small-scale farmers. 

Farmers had been complaining for months and predicting reduced planting, or none at all.

About Sh32 billion was initially apportioned for fertiliser but reallocated to the general election.

The price of fertiliser has soared to as high as Sh6,000 per 50kg bag and most farmers cannot afford it.

Munya said the money will subsidise 114,000 metric tonnes (2,280,000 50kg bags) for  crops to enhance food security.

This will  bring down the prices for a 50kg bag of DAP to Sh2,800  from Sh6,000.

Calcium ammonium  nitrate(CAN) will sell at Sh1,950 from Sh3,900.

Urea will sell for Sh2,700 from Sh6,500 and nitrogen-phosphorous-potassium Sh3,000 from Sh4,900.

Potassium chloride and sulphate of ammonia will retail at Sh2,500 and Sh2,500, down from Sh3,800 and Sh4,000, respectively.

"This will support the cultivation of 1.13 million acres. [We'll]  ensure efficient delivery and control mechanisms are in place," Munya said.

"The fertilisers will be available at the National Cereals and Produce Board stores countrywide effective Saturday." 

Munya addressed  a media briefing on fertiliser price adjustments by the government at Kilimo House.

He said government agencies will sell the fertiliser to farmers at agreed subsidised prices.

Due to the high price of fertiliser, the government recognises the need to expand fertiliser subsidies to farmers for food crops, the CS said.

He said  the rise in fertiliser prices is due to producer countries, such as China, Russia and Turkey, restricting exports to protect their own farmers.

This is compounded by heavy consumer demand from India, Brazil and the US, which are buying in large quantities, hence, reducing available global supplies.

"This increased buying of fertiliser has also led to competition for shipping, thus increasing rates for bulk and container cargo to high levels," Munya said.

Due to extreme winter conditions, gas-fuel prices drastically increased in Europe, he said.

"The increase caused many urea and nitrate production factories to close due to competition between heating homes and producing fertiliser," he said. 

"The Russia-Ukraine crisis caused further disruptions and concerns in the global fertiliser industry."

World fertiliser market prices have surged.

At this time last year, a 50kg bag of DAP fertiliser was retailing at Sh3,200 and it is now going for Sh6,000.

(Edited by V. Graham)

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