Fertiliser scarcity continues to worsen with ‘opportunistic’ vendors selling the commodity at higher prices right outside agro-dealer shops.
Nation on Sunday’s spot-checks yesterday established that the vendors are selling the commodity at K3 800 per kilogramme (kg), translating to K190 000 for a 50kg bag.
Initially, prices of fertilisers are hovering between K155 000 per 50kg bag and K166 000 on the official market.
But the current situation is frustrating Malawians.
Those we spoke with in random interviews yesterday said the situation needs to be addressed with the urgency it deserves.
“I came to buy fertilisers, only to be told that it is out of stock,” said Alfred Banda whom we met in Blantyre’s Limbe at one of the nation’s biggest fertiliser distributors. “I planned to apply the first fertilisers this weekend.”
Asked if he could consider purchasing from the vendors, Banda said: “I budgeted for the official price. I cannot afford the prices being offered by the vendors.”
For the vendors, their prices stand; they are not offering any discounts.
“It is either you buy or not, [but] these are our prices,” said one of the vendors who asked not to be named.
The particular vendor said he—alongside some of his colleagues—purchased the fertilisers from the distributors much earlier and kept it to sell in the midst of the scarcity.
“We bought in anticipation of the scarcity. We were told that scarcity of foreign currency would result in fertiliser scarcity at some point,” he said.
“Of course, it was a risk we took because if there could be no scarcity, we would have probably been selling at the same price as the agro-dealer shops.”
But despite being appalled by both the scarcity and vendors’ prices, Samantha Mkangama—whom we met at the same agro-dealer shop, bought two bags from the vendor.
“I could not miss to apply the fertilisers this weekend neither could I wait for the possibility of getting the fertilisers on the official market in the coming week,” she said.
While importers say outstanding government arrears and credit constraints have delayed shipments of at least 265 000 metric tons (MT) of fertiliser, the shortfall has potential to derail this year’s farming season.
The situation also means many smallholder farmers are yet to access the much needed commodity at a time they have already planted and their maize is starting to grow.
The frustrations are even deeper for beneficiaries of the Farm Input Subsidy Programme (Fisp), which this year will benefit 1.1 million smallholder farmers.
For instance, Moveni Dimba from Nkhaka Village in Traditional Authority Masumbankhunda in Lilongwe expressed fears during the week that delays in receiving the commodity could frustrate a potentially good harvest.
The smallholder farmer has planted maize on his two-acre piece.
“I am waiting to be told when to buy, but I fear delays will ruin our season. If access to inputs can be sped up, maybe we can save our harvest,” he lamented.
Delays in supply of fertiliser were also raised in Parliament by Kasungu South East legislator Golden Chizimba, who told the August House that only half of depots in the Central Region have the commodity.
He said: “If we do not have fertiliser, then we must anticipate a worse hunger situation next year.”
This year’s Fisp was launched with a deficit of 80 000MT, but government anticipated a positive situation with expectations that the commodity would be brought into the country by private traders.
During the launch of Fisp on November 12 this year, Minister of Agriculture, Irrigation and Water Development Roza Mbilizi said the country had 30 000MT, but the requirement is 110 000MT.
But as of yesterday, both Mbilizi and Ministry of Agriculture spokesperson Arnold Namanja were yet to respond to our request for comment on the current shortfall situation.
Minister of Finance, Economic Planning and Development Joseph Mwanamveka referred us back to Ministry of Agriculture.
But Fertiliser Association of Malawi (FAM) executive administrator Hannah Makhambera in an interview during the week said the outstanding arrears are limiting their ability to secure credit lines with suppliers.
“Failure to secure credit lines is affecting the importation process for our members,” she said.
“At the moment, we can only hope that the current administration will assist by clearing these arrears, which would allow our members to re-establish credit facilities and ensure a steady supply of fertilisers for the country.”
Makhambera said at present, local fertiliser firms have 42 432MT of fertiliser in their warehouses.
She said 140 752MT are currently in transit while 124 636MT are on the high seas headed for the country.
Mwapata Institute executive director William Chadza in a separate interview said the situation poses a major threat to the country’s food security.
“Lack of fertiliser will directly result in lower food production and ultimately insufficient food for the country. This deficit has serious implications,” said Chadza.
“It is our sincere hope that these debts will be settled and suppliers will regain access to credit lines in time, so that general farming in Malawi is not affected,” said Chadza.
On his part, agricultural policy expert Tamani Nkhono Mvula said unavailability of fertiliser points to poor planning as the matter should have long been sorted out.
“FAM has genuine reasons because they are into business. They play a critical role in the availability of fertiliser in the country. So, when they supply, they expect government to pay.
“Government should find a solution because whatever happens here will affect general farming. Preparation should be key in every farming season by sortig out issues before the official launch of programmes such as Fisp,” said Mvula.
