Gorv’t Reduces Prices Of Fertilizer On A KSh5.7b Subsidy
Peter Munya announces new fertilizer prices as Govt. rolls out Sh5.7b subsidy
The government has set aside Sh5.73 billion to subsidise fertilizer prices countrywide, Agriculture Ministry Cabinet Secretary Peter Munya has said.
In a press statement dated Friday, April 1, the Cabinet Secretary said a 50-kilogram bag of DAP fertilizer will cost Sh2,800.
A similar bag of NPK will cost Sh3,000; MOP (Sh2,500), CAN (Sh1,950), UREA (Sh2,700) and the Sulphate of Ammonia (Sh2,500), said Munya.
“The Government has set aside Sh5.734 billion to subsidise 2.28 million 50-kg bags of fertilizer for farmers growing food crops. These quantities will support the cultivation of 1.13 million acres,” he said in the press statement.
“To ensure efficient delivery and control mechanisms are in place, the fertilizers will be available at NCPB stores countrywide effective tomorrow (Saturday, April 2). These government agencies will sell the fertilizers at agreed subsidised prices to stabilise the prices of critical fertilizers to the Kenyan farmer,” said Munya.
The Agriculture minister said the Russia-Ukraine war, hoarding, rising gas prices and extreme weather conditions have pushed up fertilizer prices in the global market, prompting the government’s intervention.
“The rise in fertilizer prices is due to producer countries such as China, Russia and Turkey restricting exports to protect their farmers, compounded by heavy consumption demand from India, Brazil and USA buying up large quantities, hence reducing available global supplies.
“This increased-buying of fertilizer has also led to competition for shipping, thus increasing the rates for bulk and container cargo to high levels.
“Further, due to extreme winter conditions, gas prices drastically increased in Europe, causing many urea and nitrate production factories to close due to competition between heating homes and producing fertilizers, thus causing shortage of these critical fertilizers.
“The Russia-Ukraine crisis caused further disruptions and concerns in the global fertilizer industry,” said Munya.
The Cabinet Secretary said in April 2021, a 50-kg bag of DAP fertilizer was costing Sh3,200. Today (April 1, 2022), the same bag retails at Sh6,000 in many stores.
“Based on the current trends, a further price increase is projected,” he said, stating the government has been forced to intervene to cushion farmers from the high fertilizer prices.